##security. today the focus is on financial market infrastructure. one of the questions being asked in this section of the conference is, “ what challenges are likely to emerge with new operating models and new actors in the financial sector? ” as i said before, the fintech snowstorm is already here. the newest challenge with respect to cybersecurity is the emergence of new players offering financial services, some of whom have not provided financial services before. the question therefore becomes : what technology are they using? is it established, or is it new and unknown technology? we also know that attitudes towards security and operational risk are important. but with tech firms rushing to offer new products to the market, there is the risk of insufficient emphasis on security. this is a risk that must be monitored – not only for new products or for new players, but also for incumbent businesses. tech giants like google, apple, and alibaba look set to become dominant players. their advantage comes from providing cross - border services and having already gathered significant information about users. they are already present in the nordic marketplace. this development may lean towards monopolies, as it can create entry barriers for new and smaller players in the market. if that proves to be the case, it could have a negative impact on competition and go against the aims of the psd2 ( the recent eu directive on payment services in the internal market ( 2015 / 2366 ). this risk is greater when the payment mechanisms are outside the jurisdiction of the relevant state. then there is the question of supervision. will the new solutions be supervised, and if so, how? the challenge here is that many new solutions are global, and thus outside the european economic area or the european single market. such supervision thus requires crossborder cooperation among supervisors. the challenge for the supervisor is also to maintain a comprehensive overview of the market. for the legislator, it is a challenge to stay on top of rapid technological developments, as rules tend to lag behind technological changes. financial market participants must commit fully to guarding the system. cybersecurity needs to be promoted at all levels. with respect to this fast - changing technology, keeping one step ahead of antisocial elements is a constant challenge. as i see it, cooperation is the only way forward. it is vital that all financial system entities work together on all fronts – within and between countries – to identify and address vulnerabilities. we need to share both our successes and our

the main motive force behind it, particularly in the 1990s when we moved from foreignexchange control to free capital flows, from a fixed exchange rate to an exchange rate determined by market forces, and from inflation at a level of 15 percent to 20 percent a year to price stability. for these achievements we owe thanks to the previous governors, professor jacob frenkel and dr david klein. the government operates within a framework of long - term fiscal discipline the purpose of which is to reduce the burden on the economy of debt, taxation and government expenditure. the public in israelhouseholds and the business sector - benefit from complete freedom in regard to foreign currency ; the economy is an open one in the areas of trade and capital movements ; the capital market is developing constantly, and the government has severely curtailed its involvement in it and in the economy in general ; and the bank of israel pursues an independent monetary policy - mainly due to the nonmoney - printing law of 1985 which simply forbade the bank to print money for the government's budgetary requirements. it is important to observe at this early point that the main target of that long - term strategy is the achievement of sustained growth which we all wish for. it is the basis for improved welfare of the whole population and for welfare policy that will deal with its weaker strata. and indeed, israel's economy achieved a growth rate of over 4 percent in 2004, and although the data relating to real activity in 2005 are not unequivocal, it seems to us that growth for the year as a whole will be between 3. 5 percent and 4 percent. employment data so far show an impressive improvement, at least in the first four months of the year. are these accomplishments enough, and can we now take it easy? obviously that is a rhetorical question, the answer to which is a resounding " no! " many important challenges still confront us : the main challenge is to continue to maintain the achievements that have been attained. much work has been put into reaching this situation and much energy invested in it over many years. relinquishing the accomplishments would soon take us back to where we were and make us start the whole procedure over again. that is too dangerous a game to play, and we should not consider playing it. one of the lessons i learned while at the imf was that one can destroy in less than a year an economic achievement for which one worked for more than a decade - a lesson applicable not