from recovery and resolution planning, amongst other things. so what ’ s the global state of play in matters of banking regulation? one major step forward – the finalisation of basel iii – has already been taken. the next, equally important step lies directly ahead of us – full implementation of these rules. during implementation, we should bear in mind that basel standards are minimum, not maximum standards. nevertheless, they are designed for the global players, and simpler rules are called for where small and regional institutions are concerned. importantly, this principle of proportionality must not be mistaken for a loophole that allows lax implementation or even deregulation. 3. … and setting the route for digitalisation ladies and gentlemen as regards the road towards a more resilient global financial system after the financial crisis, we ’ re in the driving seat – and what ’ s more, we also know the general direction in which we ’ re headed. but where digitalisation is concerned, this is not the case : we still cannot know for certain where the digitalisation of the financial sector will lead us, even though we are currently right in the middle of it. and for those of us in the driving seat of banking regulation and supervision, this makes us feel uneasy. let me elaborate on that. it is not that we are unable to cope with changes and uncertainty per se. in fact, change and sectoral adjustments have been constants in the banking sector in germany and in europe. market environment, customer habits and technologies in banks have been evolving constantly. in germany today, in the middle of a low - interest - rate environment, many are adjusting their business models. since the early 1990s, the total number of banks and savings banks in germany has more than halved. for regulators and supervisors, those changes in the business environment mostly haven ’ t challenged the way we work. with regard to the digitalisation of the banking sector, we should likewise not get nervous about innovations and new competitors, as they are welcome as part of a healthy market environment. of greater concern for us is that the digitalisation of the banking sector may possibly change the gameplay as well. consider, for example, the speed of transformation. in a digital world, it is likely to increase. for instance, customer fluctuation is expected to rise, as competitors are available at their fingertips. worldwide rivalry is likely to increase through online competition. time to market has become crucial for some business, which is again likely to influence product development. all

affairs division, dealing in particular with global financial stability issues relating to the international monetary fund. some of you have already met him, and i am certain that he will be a worthy successor to thomas notheis. one final thought i would like to leave you with : our decision to have a permanent representative here in mumbai shows that the bundesbank acknowledges the importance of the indian economy and the role of its financial market in asia and the rest of the world. i strongly believe that our presence here in mumbai will deepen friendship and cooperation, not only between alexander sattler and his peers but also between the bundesbank and the reserve bank of india, and eventually between germany and india. thank you! bis central bankers ’ speeches