newer standards, impact on domestic card networks ( cost of certification, access to new standards / technology etc. ). should the regulators be involved in standard setting so that there is a level playing field for both international and domestic entities? 14. for large value payment systems, regulatory arbitrage is sought to be addressed through international common standards and principles. how can similar concerns be addressed for retail systems with system - wide importance as the extant standards are either region - specific or country - specific? one area where there is ample scope for common standards is the areas of security in electronic payments. for instance, taking card payments once again, while on the one hand europe has the emv standard already implemented, usa is still continuing with magstripe. so where does this leave other emerging countries such as india? we are striving to move towards emv but are aware that magstripe cards will be around for some time. though we have strengthened our card transactions domestically bis central bankers ’ speeches using 2fa with magstripe cards, there are still jurisdictions where magstripe is still in vogue but without 2fa requirements. hence, such arbitrage opportunities need to be addressed by adopting minimum common security standards. 15. despite several efforts at addressing the issues relating to international remittances ( for instance, the world bank has prescribed certain guidelines ), challenges pertaining to reducing the cost of remittance and addressing the aml / fatf issues ( lack of standards, legal and regulatory requirements between remitting and receiving countries is being exploited ) continue to persist. since it is a recognised fact that international remittances form a significant channel for cross - border payments, and form major part of gdp of few countries, the need for common standards and principles in this area would also be welcome. 16. the lack of international standards in retail payments could also affect the interoperability between these systems – both at a domestic level as well as at international level. at a domestic level, currently in india, we are facing a challenge in promoting interoperability amongst the non - bank and bank operated payment systems. while considering the access of non - banks to inter - bank payment network, the challenges that need to be addressed are in terms of lack of standardisation of form factors, message formats, non - adoption of international standards for card security such as pci - dss etc. 17. at the same time, in india, we have also seen the

jean - claude trichet : preventing spillovers on the global economy speech by mr jean - claude trichet, president of the european central bank, at the bretton woods committee, international council meeting 2011, washington dc, 23 september 2011. * * * ladies and gentlemen, it is now four years after the outbreak of the global financial crisis, and three years after the collapse of lehman brothers, which were stark reminders of how much financial integration and globalisation made all economies interdependent. this interdependence creates benefits but also adverse spillovers which may arise in all domains, from inadequate macro policy choices to private market imperfections. i will focus today on two key areas of policy interest to address spillovers in the global economy : ( 1 ) reforming global finance, and ( 2 ) strengthening policy discipline at the domestic and global level, before turning to how the euro area can contribute to global stability. 1. reforming global finance at the pittsburgh summit in 2009, g20 leaders agreed “ to do everything needed to repair our financial system and to maintain the global flow of capital ”. the november 2011 g20 cannes summit will take stock of where we stand in terms of implementation of this important reform agenda. in a number of areas, important decision have already been taken, notably as regards the improvement of bank capital with the agreement on basel iii, and the development of macroprudential frameworks. in other areas, we are close to concluding our work, in particular as regards a new global framework on systemically important financial institutions ( sifis ). in those areas where decisions have already been taken by the international community, implementation is now key. the g20 yesterday committed to full implementation of basel iii along the agreed timelines. the eu has already started this process early with the european commission putting its proposals on the table for the so - called capital requirements directive iv, which will translate basel iii into the legal framework of the eu member states. in terms of macro - prudential framework, the european systemic risk board has started its operation this year. all jurisdictions must ensure timely implementation so that we can ensure that we have done everything to make a difference as regards the resilience of the global, regional and national financial systems. let me briefly highlight three key areas on which we need to stay committed and where swift progress is of the essence. the first challenge may come from the shadow banking sector. the introduction of more stringent capital requirements may provide incentives for banks