to 26 % in 2012. the rise of asia primarily affects advanced economies on the real side of the economy. trade and international competition have intensified. trade with low wage countries has quadrupled the effective global labour supply since 1980. 2 companies more easily offshore stages of their production to these countries. our iphones were designed in the us but are assembled in china. so comparative advantages have not disappeared, but they are changing more quickly than before. the dutch trade monopoly with japan lasted for two centuries. by contrast, the top position in the mobile phone market has already changed several times in the last decades. it switched from after the burj khalifa in dubai, which is almost 830 meters high. this measure of the effective global labour supply comes from the imf ( weo april 2007 ) and is measured as the size of national labour forces scaled by trade openness ( export - to - gdp ratio ’ s ). more trade openness means a larger effective labour supply as more people work in the tradable sector worldwide. bis central bankers ’ speeches nokia in finland via blackberry in canada to samsung in korea. it is vital that western countries become flexible enough to accommodate such more frequent changes, and to prevent structural problems like long term unemployment. this would also help them benefit from asia ’ s fast - growing domestic markets. germany ’ s strong exports to china show that chinese people enjoy driving an audi or bmw as much as we do. the rise of asia also affects inflation in advanced economies – an important theme for a central banker. inflation is lower because consumers directly profit from cheap imports like camera ’ s, computers and clothing. more indirectly, domestic producers also keep prices low because they are afraid of losing market share to asian competitors. the rise of asia has therefore contributed to the decline of inflation over the last decades, alongside other factors like better monetary policy. in recent years however, this was partly offset by the strong increase in food and commodity prices, which is driven by demand from emerging markets. china for instance accounted for 30 % of the growth in oil demand between 2002 and 2005. influence of asia on the financial side while the rise of asia has clear effects on the real side, the effects on the financial side are more controversial. some people claim that asia had a large influence on the exceptionally loose financial conditions that led to the financial crisis. in their view, the strong increase in global liquidity was largely driven by the savings glut in asia, particularly in china. asian

spirit of psd2. the big – unanswered – question is, then, how to avoid it. • how should small players get the chance to develop. loosely speaking, psd2 gives them the right to access bank accounts ; again, if the customer consents. but this is only their legal position. can they survive if bigtech penetrates into the market? will they be squeezed, then, between the incumbent banks and the new big players? not necessarily! there is an increasing tendency for banks and fintech companies to work together. banks provide a large customer base, capital and regulatory experience. the fintechs, in turn, offer specialist expertise and agility in product development. for them, the proverb “ if you can ’ t beat them, join them ” seems to apply. • another concern or challenge is : what does psd2 imply for the business models of banks? banks provide and maintain the infrastructure, which the new players can use freely to supply their services. banks cannot charge for the access, for information requests or for the use of their infrastructure. so, banks may need to review and adapt their business models. fortunately, psd2 also provides banks with new business opportunities. they can decide to become payment initiation service provider or account information service provider and offer their customers the new services themselves. they can reorganize themselves, create agile teams of young and creative people to develop innovative tools, based on access to the account. this is already happening. and, of course, they can closely cooperate with fintech companies. 3. psd2 and the payment system • it is also important to look at the system as a whole. this is where dnb comes in. dnb is entrusted with the prudential supervision of banks and payment service providers settled in the netherlands. dnb is also the central bank. in that capacity, it is legally mandated to promote a sound functioning of the payment system. • psd2 gives financial supervisors a prominent role in maintaining the security of payments in the eu. psd2 not only creates business opportunities, it may also change banks ’ risk profiles. operational risk in particular is likely to increase. this includes cybersecurity, digital fraud and the risk of mismanagement of personal data and privacy. new service providers are also exposed to these risks. banks, in addition, may have to adapt their business models, which creates a strategic risk. on the other hand, individual