. estonia has shown a remarkable capacity to take difficult political decisions when they are needed. this, i believe, was widely recognized and respected, and helped pave the way for estonia to join the monetary union. it also bodes well for estonia ’ s future in emu. boom and bust my third observation regards another factor that also bodes well for estonia as part of the euro area : the recent boom and bust episode in this country. estonia went through a very classical cycle of low interest rates, easy credit, and unrealistic expectations, which eventually built into a substantial overheating of the economy, and finally a spectacular bust in 2008 – 2009. some countries experienced this as part of the monetary union, while estonia experienced it all by herself. i am optimistic that the experience will prove to be a vaccination against future financial excesses. the finnish depression in the early 1990s resulted in suffering and economic hardship for many, but it also re - established a more cautious economic attitude that resulted in stronger balance sheets, and ultimately a stronger economy. finland received a vaccination against financial excesses that has lasted well over a decade. i am optimistic that estonia will benefit from a similar vaccination, and will emerge from the recession as a stronger economy. only the beginning my fourth observation is that this is only the beginning. a lot is going on inside the euro area and the eurosystem. economic policy coordination is being given much greater traction than before. in particular, the crisis has shown that a group of countries with a common currency and highly interconnected banking sectors have a great deal of interest in each others ’ public finances. how each country chooses to allocate its public expenditure remains mostly its own business. but how a country finances its public expenditure must be a matter of common interest to a much greater degree than we were willing to acknowledge in the past. enhanced economic governance, including the european semester, creates a framework for ensuring that budgetary policies take into account the common european interest. i trust estonia will be a like - minded partner for all of us who will ensure that this framework will work as intended. i am also looking forward to working with the governor of eesti pank on the european systemic risk board that will be established as of the beginning of next year. we have high expectations for this new body. the financial crisis showed that there is a considerable gap between microprudential supervision and monetary policy. we need stronger policy instruments to tackle fluctuations in

marja nykanen : banking in the digital age opening remarks by ms marja nykanen, member of the board of the bank of finland, at the banking in the digital age conference, helsinki, 14 june 2018. * * * ladies and gentlemen, dear fellow bankers and digital enthusiasts, money makes the world go round, as they say. it facilitates trade, enables transactions, and lubricates the economy. but what does money look like? is it metal coins, paper banknotes, account entries on bank ledgers, or something completely different? the truth is, it is all of the above, and it keeps evolving. money is created by the banking sector as a whole, that is, by the central bank and the commercial banks together, and it takes many forms. in a world that is turning increasingly digital, so does money and banking. today ’ s event is about looking into the future and about understanding the change. we will hear five excellent presentations from true leaders in this transformation, as well as a panel discussion which includes the top three banks operating in finland. we will also have a live illustrator drawing pictures of the presentations. you can see the illustrations taking shape on the screen above. so don ’ t be surprised if there is something strange happening on that screen! digital technology is transforming the financial industry both from the bottom up and from the top down. on the one hand, improved infrastructures and back office technology will help to make financial companies more cost efficient. at the same time, however, financial services are becoming more mobile, more 24 / 7, and more fit - for - purpose. from the perspective of an individual consumer, the financial industry ’ s digital transformation will be most evident in the nature of payments. credit transfers between bank accounts will soon happen without delay. although the use of cash has decreased in recent years and cards have become the most popular form of retail payment, banknotes and coins are in no danger of disappearing soon. change is not always perceived as beneficial. the financial industry is already feeling the impact of automation which is making many jobs obsolete. there are many who have been diligently working in the banking industry for decades, but who are now on individual level facing uncertainty and the need for acquiring new skills. a more digital bank relying more on automation is also more vulnerable to cyber - attacks and systems malfunctions. information security has traditionally concentrated on the role of the organisation, focusing on measures such as antivirus protection