and medium - sized enterprises ( msmes ), as well as tens of millions of self - employed businesses and ordinary rural households can obtain bank loans. government - funded or government - subsidized medical and health insurances have benefited all urban and rural residents. these are extraordinary achievements even in the global context. however, that ’ s not enough. given that the contradiction between the unbalanced and inadequate financial supply and the multilevel and diverse financial demand remains relatively salient, much work remains to be done to achieve the goal of inclusiveness in the finance sector. we must steadfastly advance the supply - side structural reform of the financial sector. to be specific, we should cultivate small and medium - sized financial institutions, while developing large and super - large financial enterprises. in the meantime, we should also foster both specialized professional institutions and one - stop institutions with a comprehensive business scope. financial entities of different types should remain committed to their roles, learn from each other ’ s strengths to offset their own weaknesses, and benignly compete and cooperate with each other, in a bid to build together a prosperous financial sector. all financial institutions should speed up digital transformation, which is an inevitable way to improve their ability to serve the public. 1 / 4 bis central bankers'speeches deepening the internal governance reform of financial institutions remains an imperative task. in this regard, we must face up to the hidden risks and violations of laws and regulations that have been exposed, resolutely punish corrupt officials, and spare no efforts to recover the losses of the country and the people. financial institutions of all sizes, including city commercial banks, rural credit cooperatives, trust companies and leasing companies, must establish and improve the modern corporate system. in this process, the key is to strengthen the corporate governance structure, and strictly select senior executives who are loyal, professional, clean and pragmatic. supervision and regulation should be further strengthened and improved, so as to channel financial resources to weak areas in economic and social development. we should adopt a customer - centered mindset, strive to realize the career aspirations of employees, take root in urban and rural communities, and actively fulfill social responsibilities. we should improve the availability of financial services and reduce service costs through technological empowerment, so that people can have equal and even access to financial resources and enjoy high - quality financial services. the accomplishment of these goals essentially conforms to the need of value creation for equity investors. financial institutions must tap their professional

and creditors. this reduces moral hazard and funding advantages due to public bail - outs. while the “ key attributes ” are applicable to all kind of financial institutions, their implementation has so far advanced mostly for banks. in the european union, the attributes have been transposed via the bank recovery and resolution directive ( brrd ) for all eu members as of 2015. for euro area countries, the single resolution mechanism was established in 2016 with the single resolution board as a common resolution authority. the new rules were applied for the first time in 2017. these first applications highlight shortcomings that need to be addressed ( deutsche bundesbank 2017 ). for example, the decision that failing banks have reached their point of non - viability should be based on more specific criteria in order to avoid ( costly ) delays of the “ failing or likely to fail ” decision. moreover, the first applications of the brrdrevealed discrepancies in bail in rules according to the european resolution framework, state aid rules, and national insolvency laws. finally, contagion risks that might emerge from banks ’ crossholdings of each other ’ s liabilities can be mitigated by implementing holding restrictions. 3. there is the risk of a roll back of reforms fading memory of the crisis and a favorable economic environment intensify pressure to relax financial regulations. the risk of a roll back of reforms is particularly acute when business models of incumbent financial institutions are under pressure as a combination of excess capacity in some markets, changing patterns of globalization, and technological change. 7 since the financial crisis, reforms have been initiated – the impact of which is now gradually making itself felt in the markets. higher capital and resilience of the financial system are a stated objective of these reforms. we can now begin evaluating the effects of the reforms. have they achieved their objectives? do the reforms bring with them unintended side - effects? under the german presidency in 2017, the g20 have agreed on a framework for a structured evaluation of the reforms ( fsb 2017 ). a structured evaluation is needed to gauge the costs and benefits of reforms. such an analysis needs to take the perspective of society as a whole because not all the costs being discussed in the public arena are in fact costs to society. the costs of failures in the financial system should be borne by those who cause them – the shareholders and potentially also the creditors of financial institutions – rather than by the taxpayer. technically speaking, the reforms aim