crisis. let ’ s take a closer look at the domestic segment. chart 3 shows the development of domestic swiss franc issuance by sector. three aspects are striking. first, this development is chiefly driven by switzerland ’ s two mortgage bond institutions ( mortgage bond bank and mortgage bond institute ) ; these entities jointly account for around a third of the domestic segment. the strong rise in this sector reflects both the growth of the swiss mortgage market and greater use of this refinancing instrument by the banks. from the banks ’ perspective, it is preferable to borrow via long - term instruments such as mortgage bonds than to finance mortgage loans via customer deposits, as doing so enables better maturity matching on both the assets and the liabilities side. furthermore, in the current interest rate environment, mortgage bonds offer banks better financing conditions than customer deposits. second, domestic non - financial corporations ( ‘ other corporations ’, light blue ) were a further important driver of the increase in bond issuance in the domestic segment. the outstanding capital market debt of these corporations has more than doubled since the financial crisis – to almost chf 70 billion. this is due, among other things, to the fact that it has become more attractive for them to finance themselves via the bond market than via bank loans ( cf. chart 4 ). having said this, relative to these companies ’ total liabilities as well as to gdp, capital market debt remains low. the increase nevertheless shows that corporations have, as expected, taken advantage of the exceptionally low interest rates to raise more capital. as a result of this development, the market for bank loans has become slightly less important than the capital market. notwithstanding this, when it comes to external financing, bank loans continue to play a key role. as is the case in many european countries, as well as japan, switzerland ’ s financial system is fundamentally bank - centric. bank loans account for just seite 3 / 7 over 80 % of companies ’ external financing. 1 in the uk and the us, on the other hand, companies raise a far larger share of their financing via the capital market. from a monetary policy perspective, the differing transmission of negative interest to the capital market and lending rates is unproblematic to the extent that stimulating lending was never a priority for the snb. 2 the core concern was – and is – the restoration of the interest rate differential with other currencies and the associated effect on the exchange rate. indeed, in terms of financial stability,

see greater empowerment of both the public and private sectors. greater efficiencies of electronic payment channels will also bring about an accelerated velocity of payments, increasing economic activities. we see a rise in public confidence in making electronic payments — this can, and will result in positive culture change! as more and more consumers gain confidence in making electronic payments, we look forward to the market expanding with more innovations. participating financial institutions are granted greater opportunities to diversify and widen the products and services they offer. innovation in financial services delivery will thrive. with a more efficient retail payments infrastructure, various services will emerge as the needs of financial consumers evolve and become more sophisticated. we anticipate the emergence of a new competitive space where service innovation is encouraged. new business models, technologies, industry wide collaborations and partnerships will be developed. with the implementation of nrps and the launch of new achs such as 1 / 2 bis central bankers'speeches instapay, financial institutions will be challenged to develop innovative business models customized to their target markets ’ needs, to ensure client loyalty, and to better compete for market share. our efforts in implementing the nrps are rapidly providing individuals, businesses and government, additional options on how to complete payments, collections or disbursements, depending on their specific needs and the characteristics of the fund transfers or payments. right now as we launch instapay, we have seven ( 7 ) pioneer bsp - supervised financial institutions capable of sending and receiving payments. in addition, another thirteen ( 13 ) are able to receive payments. by the middle of this year — in a few months — we expect more financial institutions to participate in instapay. in parallel, the bsp is engaging the private sector and the government to encourage their adoption of instapay and pesonet to meet their payment system requirements. we now have critical mass. it is only a matter of time before we attain widespread usage. ladies and gentlemen, the digital transformation of financial services is happening now! the country ’ s financial services industry needs to evolve to remain competitive and relevant. the steps we have taken to implement the nrps — the launch of pesonet and now, instapay, would not have been possible without constant and close dialogue and collaboration with you, our partners in the industry and with the philippine payments management inc. ( ppmi ), an industryled self - governing body and an important ally in pursuing nrps goals. our collaboration and cooperation is