those risks are acceptable only if both the consumer and the bank agree to the role of the third party. one good way of arranging this is for both parties to have to agree to grant access. in other words, dual consent. our european colleagues are worried that, in practice, banks will not grant access to those third parties, and that this will hold back innovation. that is why there is currently insufficient support for the principle of “ dual consent ”. the dutch market, however, is in favour of it, and so that is the challenge i am issuing to any payment service providers and banks here today. show that it can be done. there is nothing to stop us from operating a “ dual consent ” approach in the netherlands. and i for one would welcome it. “ dual control ” is also secure, and i am sure no - one will blame me for saying that security is my top priority. and i think that you and the rest of society will probably all agree. innovation is good, and even very good. but if your bank balance suddenly and innovatively disappears, you would wish that security had been the number one priority. people have to be able to trust that their payments will arrive in the right place and at the right time. the routes that monetary flows take need to be predictable and known. ladies and gentlemen, it is now time for some rhetoric. if you have read quintillianus, you will know that this is when i should return to my metaphor. in other words, to the metaphor that i threw overboard at the start of my speech. the metaphor of sepa as a wonderful new waterway, with neatly finished retaining walls and an efficient system of locks. but i am not going to do that today. instead i am going to tell you that there is a conference on water management being held tomorrow in rotterdam and that you might find it interesting. thank you for listening. bis central bankers ’ speeches

klaas knot : monetary policy responses to the corona crisis introductory remarks by mr klaas knot, president of the netherlands bank, at the eurofi financial forum, berlin, 11 september 2020. * * * a framework for central banks to assess the appropriateness of their policy decisions usually has three dimensions : necessity, effectiveness and side effects. it is important to view these dimensions in conjunction, as there are usually trade - offs involved, which may differ over time. in my introduction, i will elaborate on the dimensions and trade - offs in the current monetary policy setting. the necessity of continued monetary policy support follows from the mandate of the ecb, which states that price stability is the primary objective. it is beyond doubt that the extended monetary policy measures since mid - march have been needed to support monetary transmission and help the economy establish a foothold in the lockdown. this has contributed to avoid worst case scenarios and deflationary threats. the monetary policy responses to the corona crisis have clearly been effective. the ecb responded forcefully by employing a multitude of instruments, including the new pandemic emergency purchasing program. this has been effective in limiting the fall - out from the financial market stress and preserve the loose monetary conditions. moreover, the targeted ltros have been effective in safeguarding banks ’ funding liquidity. thereby, the emergency monetary policy measures have been an effective circuit - breaker to prevent bad equilibria. as we have moved to the recovery phase, the focus of the monetary measures has shifted to supporting inflation, by maintaining accommodative monetary and financial conditions. however, broad and encompassing policy response is important to ensure that we don ’ t rely overly on individual measures that could be subject to unintended side effects if they are kept in place for too long. for example, if central bank support remains in place for a prolonged period of time, debts accumulate and asset prices are further stimulated, posing risks to financial stability. instead, a sustainable recovery from the crisis also requires sufficiently productive public and private sector investments. and structural reforms that foster the creation of new firms, while non - viable firms are wound - down in an orderly fashion. though this can be a painful process for some sectors, the economy has to adjust to a world that might have structurally changed. monetary policy can maintain appropriate financial conditions to help the economy adjust, but other policy authorities will have to set the adjustment in motion. the eu recovery fund has the potential to contribute to this, if it