service businesses. it would be informative to examine how these new players could influence the structure of financial service provision, financial markets, and risk - sharing among various entities. from a central bank viewpoint, we need to closely monitor the impact of these new entrants so that new technologies will enhance the efficiency of payments, settlements, and financial services, while ensuring their safety and stability. second, new styles of systemic importance may emerge under the development of fintech. since the global financial crisis, efforts have been made to classify big banks as systemically important financial institutions, or sifis, based on factors such as the size of the balance sheet. based on these efforts, various financial regulatory measures have been taken so that their systemic importance would not threaten financial stability. recently, however, entities that provide global it platforms to many entities and accumulate huge volumes of big data have become increasingly powerful and influential in wide - ranging businesses including financial services. in addition, high - speed, high - frequency transactions in financial markets are expanding, and if many market participants come to use similar algorithms in conducting such transactions, this might involve the risk of amplifying one - way market developments. based on these changes in environment, rather than the size of balance sheets of banks, factors such as global it platforms, the huge volumes of big data, and widely used algorithms might become more systemically important from the viewpoint of financial stability. third, as the utilization of big data is becoming more important in the provision of financial services, data security, privacy, and the consensus of stakeholders on data utilization will become even more critical. thus, financial service providers and stakeholders are required to pay due attention to data protection and privacy, in order to maintain public confidence in innovative financial services utilizing new technologies. finally, as application of ai to financial operations is becoming widespread, ensuring governance in ai's decision - making and accountability to customers using ai - related services may also become critically important. if customers are concerned that ai's decision - making might turn into a " black box " and poses risks to them, such customers'anxieties would hinder the application of ai to create innovative financial services. in this regard, efforts to ensure the governance and accountability of ai are meaningful to " wipe out " people's concern about new technologies. iv. closing remarks in promoting fintech, france and japan seem to have common challenges as developed countries. in the case of emerging and developing countries, basic financial services are underdev

to maintain financial system stability. using the metaphor, the economy after the burst of a bubble can be divided into two phases : the phase of “ acute pains ” arising from the malfunctioning interbank money markets and the phase of “ chronic illnesses ” from balance - sheet adjustments after such acute pains recede. it is very important to stave off the acute pains, which are likely to trigger a sharp contraction of economic activity and potentially produce devastating effects on the economy. in may 2010, major central banks reintroduced dollar - fund supplying operations when dollar - funding markets showed signs of tension, again reflecting increased concern over sovereign debts problems in peripheral european countries. such measure was implemented with consideration of the importance of maintaining the stability in interbank funding markets. second, we need to continue with the unprecedented easy monetary policy, given the current economic conditions. in fact, many advanced countries have maintained very accommodative monetary policy. the bank of japan ( boj ) also decided recently to implement a comprehensive monetary easing policy in order to further enhance monetary easing. that included three measures : ( i ) clarification of maintaining virtually zero interest rates ; ( ii ) clarification of the time horizon to maintain the virtually zero interest rate policy ; and ( iii ) establishment of an asset purchase program to purchase various financial assets, such as government securities, commercial paper ( cp ), corporate bonds, exchange - traded funds, and real estate investment trusts and to conduct the fixed - rate funds - supplying operation against the pooled collateral. third, we need to accept the fact that, once a country experienced a bubble, it will take fairly long to rise up from the bottom in the aftermath of the burst of a bubble, and restore the fullfledged recovery path, despite various unprecedented policy efforts. as japan ’ s experience shows, it is the hard fact that the economy will be unable to achieve a strong recovery without resolving “ excesses ” accumulated during a bubble period. the form of “ excesses ” varies from country to country. in japan, they were “ three excesses ” in the business sector : employment, production capacity, and debt ( chart 9 ). in that context, we sometimes hear an argument that “ the delayed monetary policy responses caused the economic stagnation ”. it is true that the boj failed to fully recognize the significant magnitude of adverse effects soon after the burst of the bubble, like other central banks. but it is also true that the boj carried out