union and of the european union itself, and others to the absence of a sufficient will to press for reform, all failures and absences that have eroded european citizens ’ confidence in the integration process. against this background, i would like to focus my comments on the difficulties facing economic policy as it attempts to put the euro area recovery on a firm footing. first, i feel that the ecb deserves recognition for having been the european institution that provided the quickest and the most ambitious response to the crisis. it assumed, in exceptional circumstances, a key role in vanquishing doubts as to the continuity of the euro, in underpinning the recovery and, subsequently, in combating the risks derived from the current situation of near - zero or even negative inflation rates. notably, the ecb ’ s unique role as the monetary authority of various states and economies did not weaken its resolve as it pressed ahead with its four broad lines of action : first, key policy rates were reduced almost to the bottom of the possible range. thus the marginal deposit facility rate, which had been negative since 2014, stood at – 0. 4 % in march this year. in the current context of abundant liquidity, this rate is a key reference in monetary policy. bis central bankers ’ speeches second, the ecb governing council strengthened its communication policy through the publication of forward guidance. third, the liquidity - providing instruments used since 2008 were adapted to the new circumstances. in mid - 2014 longer - term refinancing operations were commenced with the specific objective of stimulating credit expansion, i. e. making access by banks to very long - term funding from the ecb conditional on them granting credit to households and nonfinancial corporations. in march it was decided to extend this instrument to 2017. and fourth, since 2014 the ecb has been implementing a quantitative easing programme entailing the large - scale purchase of private and public assets which, in its first two years of application, will reach an amount equivalent to 17 % of total euro area gdp. at present the purchase of assets under this programme covers nearly the whole range of marketable securities eligible as collateral in eurosystem operations : secured bonds issued by banks ; securitisations whose underlying assets are loans to the non - financial private sector ; public debt of the central and regional governments ; supranational agencies and institutions ; and, more recently, non - bank corporate bonds. since april this year the ecb has been purchasing €80

ravi menon : fintech – harnessing its power, managing its risks panel remarks by mr ravi menon, managing director of the monetary authority of singapore, at the singapore forum, singapore, 2 april 2016. * * * fintech is fundamentally transforming the financial industry. • the smartphone is becoming our bank. • computer programmes are offering investment advice. • people can now lend directly to one another online. technology will replace many jobs in finance but will also create exciting new jobs. • calls for new and different skill sets – understanding technology and the ability to work with and harness the power of machines and algorithms • as someone in silicon valley put it, “ the geek shall inherit the earth ”. unregulated fintech companies are now providing many financial services. they will challenge traditional financial institutions ( fis ), disrupt and even displace some of them but will not replace them. • banks and insurance companies have something that unregulated entities do not have – trust. trust based on a track record of performance. • fis are not sitting still. – they are actively harnessing technology to enhance product offerings and improve efficiency. – they are setting up in - house fintech units to replicate the start - up mentality. many global banks have set up “ innovation labs ” in s ’ pore : citibank, stanchart, ubs, hsbc, to name a few. and insurance companies too : aviva, aon, axa, metlife. – they are also collaborating with or buying over fintech companies to tap their technologies. financial technology, or fintech, may well be the best hope for the future of finance. • the financial industry is facing many headwinds – • slower economic growth, narrower margins, tighter regulation, and greater competition from outside. fintech can potentially help the financial industry regain its dynamism and at the same time purposefully serve the economy and the people. but the fintech phenomenon is not without risk. • the rapid pace of innovation and adoption throw up many questions for the industry and financial regulators. • what should be the policy approach? will speak from the perspective of mas. first – take a differentiated approach to different technologies and their applications. fintech encompasses a wide range of technologies : we cannot take a “ one - size - fits - all ” approach. the nature of technologies, their benefits, and risks are very different. bis central bankers ’ speeches • digital payments, digital currencies –