machines of the participating banks and terminals at retail outlets are being upgraded to facilitate meps cash transactions. with these developments, specific programmes need to be implemented to promote the usage of meps cash among the public and business entities. indeed, this e - payment program is a good start to promote a wider use an acceptance of this means of payment. ladies and gentlemen, while the efficiency of electronic means of doing banking is valued, the basic tenet of banking services that is providing security and safety still remains. the potential benefits from electronic delivery channels need to be exploited without undermining the security and confidence of the banking public. the challenge to providing multi channel services in today ’ s banking is the ability to integrate and interface the different delivery channels. multi channelling strategies therefore needs to be approached holistically. technological development is not only about creating alternative delivery channels, but it is also redefining the financial landscape. indeed, as a result of significant innovations in technology, the payments industry landscape will be redefined with the entry of non - banks into payment services once thought to be the domain of banks. banks need to be more proactive in their role in the payments mechanism. this includes continually finding new effective ways to provide the payment services in a cost - effective, and efficient manner by taking advantage of technological advances and meeting the changing demands of businesses and consumers. banking institutions need to innovate to reach potentially new markets and consumers. it is not just about web enabling existing products and services but also being able to provide the complete financial services required by consumers and businesses. it is also not just about implementing technology solutions but being able to customise the product offerings to our local requirements and preferences. ladies and gentlemen, the growing evolution and demand for online financial services will lead to greater digitisation of banking services. while the use of cash and cheques will continue to be important, more consumers are realising the convenience and flexibility of electronic banking in meeting their daily payment needs. the change in consumer behaviour is reflected in the increasing use of electronic payment systems in the country. the volume of cheques processed through the cheque clearing centres has shown a declining trend in terms of both volume and value. this has been reinforced by the introduction of the interbank giro and internet banking three years ago. the number of interbank giro payments has more than quadrupled in 2002, while electronic funds transfer and bill payments conducted through internet banking has been on an increasing trend. more customers are likely to be drawn

result of consolidating growth. governments and financial players must prepare themselves for it. they are aware of that. do the divisions within the european central bank ( ecb ) over the withdrawal of exceptional monetary policy measures weaken its credibility? the european treaties chose for monetary policy to be steered by a governing council precisely to allow for the expression of different viewpoints. this range of opinions is an antidote to groupthink. what ’ s essential is to come to a consensus at the end of the discussion, which is nearly always what happens. there is no disagreement over the current monetary policy stance. how can one avoid the reduction of monetary support causing panic on the markets? the choices available to the ecb are too often caricatured by its observers. some fear that we might traumatise the financial markets if we turn the dial of monetary policy by a millimetre, while others prescribe a forced march towards normalisation. the reality is quite different. as early as last december, we scaled back our asset purchases without undermining the support given to the economy. so, i would argue that we have already adjusted our monetary policy, and this was made possible by the continued improvement in the economic situation. this adjustment has been done in a very careful way, as a number of factors continue to weigh on inflation. if needed, the governing council will continue to adjust its instruments both qualitatively and quantitatively. but when this is needed, it should do so carefully and flexibly, and based on what matters for us within the framework of our mandate : the inflation outlook. we must be transparent in our communications on these developments. otherwise we run the risk of a more abrupt adjustment for the markets when the decisions are actually taken. but inflation today is very close to the objective of 2 %... we base our decisions on facts, but make no mistake – without monetary support, inflation today would not be approaching 2 %. that gives us reason to be careful. the underlying inflationary pressures are still weak. another issue that we are monitoring closely is the impact of the ecb ’ s negative deposit rates on the banking sector and its capacity to support the economy. banks ’ profitability and the growth in credit show that fears over negative side - effects are not justified at present. in the light of these observations, there is no reason to change our strategy. some economists argue that low rates are contributing to speculative bubbles forming, in particular in the housing market