sabine lautenschlager : is small beautiful? supervision, regulation and the size of banks statement by ms sabine lautenschlager, member of the executive board of the european central bank and vice - chair of the supervisory board of the european central bank, at an imf seminar, washington dc, 14 october 2017. * * * the call for greater proportionality in banking regulation and supervision is growing louder – not just in the united states and europe, but also globally. to put it bluntly, proportionality involves applying a different set of rules to banks operating in the same market. careful consideration must therefore be given to the various objectives pursued, and the costs and benefits involved. on the one hand, this means that we need to assess the financial stability risks posed by individual banks and groups of banks. and we need to look at the implications of proportionality for local competition. on the other hand, we have to consider the costs of regulation and supervision. small banks face greater difficulties in complying with complex regulation. this may put them at a disadvantage and therefore reduce diversity in the banking sector. however, a wide diversity of small and medium - sized banks makes the banking sector more stable. thus proportionality may be necessary to foster such diversity. these are the kind of trade - offs we need to talk about. but let me begin by talking about risks, as this is the starting point for regulation and supervision. it can generally be assumed that the failure of a small bank poses a smaller risk to the financial system than the failure of a big bank. so it might make sense to apply a different regulatory and supervisory regime to small individual banks. however, when many small banks with the same business model form mutual liability arrangements via institutional protection schemes, qualified holdings or integrated cooperative structures, they might become systemically relevant – at least at national level. in the event of a failure, all these small banks taken together could pose a big risk to the financial system. this is known as the “ too many to fail ” problem. it deserves particular attention – and probably a response that goes beyond the standard microprudential supervision that we are here to talk about today. as small banks are generally less risky, the costs and benefits of regulation and supervision may not be balanced for small banks in some areas. applying to small banks the same approach that is applied to large banks would not be proportionate, as the costs, in particular of complex prudential rules, would be higher in

ravi menon : the future of money, finance and the internet speech by mr ravi menon, managing director of the monetary authority of singapore, at the singapore fintech festival, 9 november 2021. * * * good morning everyone. if you ’ ve just joined us, welcome to day two of the singapore fintech festival. i want to talk about the future of money, finance, and the internet. but first, a little history. juno, plutus, mercury money as a medium of exchange and store of value has been around for millennia. it is named after the roman goddess of money, juno, who carried the title moneta. rome ’ s currency was first minted at her temple in the third century b. c. money has come a long way since : from bullion coins, to paper notes backed by the gold standard, to fiat currency backed by central banks, and now digital money. finance or the intermediation of savings and investments existed in many ancient civilisations. the roman god of wealth, plutus, comes closest to being the presiding deity for finance. finance too has come a long way : foreign exchange markets and bills of exchange emerged in the middle ages, before modern finance took shape with fractional reserve banking, stock markets, mutual funds, and insurance. the internet is more recent. its official birthday is 1 january 1983, though the concept itself – namely a computer network which enables information sharing among users – goes back to the us defence industry in the 1960s. of course, the ancient romans did not have a god for the internet, but perhaps mercury – the god of commerce and communications – comes closest. the future of juno, plutus, and mercury is increasingly becoming entwined, in large part due to technology. let ’ s check out what juno, plutus, and mercury have been up to lately. juno and innovations in money juno has been busy in the past decade with new forms of money emerging. but before we can make sense of new money, let us refresh our understanding of existing money. today, we keep money in two forms : physical cash in the form of notes and coins ; and digital money in the form of deposits with commercial banks. most of our money is privately created by commercial banks and is in digital form. bank deposits account for 92 % of the money supply in singapore and are the basis for all electronic payments by households and firms, using debit and credit cards, e - wallets, and account - to