it to market forces to keep the financial sector in check. as long as banks perform on all three parameters, the credibility and soundness of the bank will ensure their ac - side 5 af 9 cess to the necessary capital and funding. and with the resolution regime in place we no longer need governments to save banks with taxpayers money. the most important effect, however, is that we significantly reduce the likelihood of a new financial crisis with all its detrimental effects on our economy. slide 9 : unconventional monetary policy let me now finally turn to some future perspectives for us in the central banks. since the beginning of the financial crisis many things have been far from normal for central banks. in response to persistently weak demand and low inflation, central banks across the globe have reduced their monetary - policy rates to historically low levels. in fact, danmarks nationalbank was a central bank pioneer in terms of setting the key monetary - policy rate well below zero already in 2012 in order to offset large capital inflows. as we have seen in denmark, the low interest rates set by central banks across various currency regimes are simply the result of one thing and one thing only : central banks are trying to fulfil their specific mandates which have been assigned to them by elected representatives. the low interest rates in denmark have been nothing but a necessary consequence of our fixed exchange - rate policy. however, very low and even negative interest rates might not be preferred for an extended period. long periods with very low interest rates create risks of financial bubbles in specific sectors of the economy. for example, we have seen increasing prices in the housing market here in aarhus and in copenhagen. [ this is something we will keep an eye on in the coming years. ] * * * slide 10 : major global central bank balance sheet with interest rates close to their effective lower bound central banks have deployed a range of so - called unconventional measures to achieve the desired amount of monetary accommodation. the most famous one has side 6 af 9 been to engage in purchases of financial assets including government bonds on a massive scale – known as quantitative easing, or qe. qe has become an integral part of the set of unconventional tools central banks use to support economic growth and increase inflation towards target levels. [ as you can see from this figure, the balance sheets of the world's major central banks, the fed, bank of japan, bank of england and the ecb have therefore expanded to historically high levels. ] the key question is : do these

that is good news 2. need for strengthen the financial regulation and prevent future crises 3. hopefully we enter more normal times with a lowkey role for central banks in economic policy increased competition and new partnerships facebook google alibaba fintechs starbucks bigtechs amazon apple denmark is a digital front - runner the cyber threat today source : bank of england. generic perceptions based on central and commercial threat intelligence. fsor : financial sector forum for operational resilience lessons learned from the financial crises the crisis revealed a need to shake - up the regulation of banks the pillars of financial regulation unconventional monetary policy major global central bank balance sheet are cryptocurrencies a mirror of the tulip mania? bitcoins have skyrocketed but have no fundamental value the future of central banking 1. money in society depends on demand it is not possible to create more money than household want to hold 2. cbdc – central bank digital currency hard to identify what cbdc can do better 3. digital money already exist in denmark deposit guarantee, full access to bank accounts and instant transfers