the storm will pass, and we will draw some conclusions. here the recent report of the financial stability forum, chaired by my italian colleague mario draghi, has made a major contribution. the issues that we are facing are serious but they must be put in a perspective. many countries gradually liberated their capital account and removed credit controls in 1980'ies. the consequences for the nordic financial markets were profound. there was a period of exuberance in the late 1980s, a housing and credit boom, followed by a banking crisis and a deep depression. the nordic experience was not uncommon in those times, when many countries were liberalising their markets, and it carries some resemblance to what we are experiencing today. in both cases, advances in financial integration, combined with lack of sophistication from market participants and policy makers, led to excesses and, eventually, to a costly correction. but what is important to bear in mind is that no country experiencing difficulties in those times, seriously considered reinstating capital controls as a response to the crisis. although the pain at the time was real, there simply was no question that the benefits of financial integration far outweighed any costs of transition. the rapid growth experienced by nordic countries including finland over the last 15 years would have been simply inconceivable without liberalised financial markets. the cost of learning was high, but we emerged from the crisis stronger and competitive. and so it is today. we should recognise and learn from the risks and vulnerabilities that manifest themselves in the market turmoil. we should design the appropriate policy and regulatory responses. but we must not lose sight of the simple fact that the very same financial innovations that now propagate turmoil also carry the potential of tremendous benefits in terms of lower cost of finance and better diversification of risks. the challenge is to find the right balance of risks and rewards. we need better incentive structures. we need better performance from rating agencies. we need to enhance transparency. the regulators need to pay more attention to liquidity risks. but still, we cannot design policies that eliminate risks. the eu has made progress in financial integration. last year, the ecb and the commission each published a report ( financial integration, ecb 2007 ; european financial integration report, ec 2007 ) on the state of financial integration in the eu. the same issues were further elaborated in the commission report emu @ 10, released just ahead of this forum. these reports found that, in markets closely linked

standardization of the regulation across countries and facilitate cross - border regulation of digital assets. obviously, cross border regulation implies cooperation and collaboration between regulators. it is common practice for financial services regulators to sign memorandum of understanding ( mou ) with their counterparts for cooperation and exchange of information in the field of conventional financial services. these mou may now have to be extended to collaboration in fintech and financial innovation. it may be foreseen that such collaboration will improve the cross - border regulation of fintech and digital assets through : a. harmonised / equivalent fintech regulatory frameworks across jurisdictions which is an effective tool against regulatory arbitrage and will enable licensed fintech business to have access to other markets ; b. bridging the expertise gap between jurisdictions for efficient framework development ; and c. capacity building and knowledge sharing in the field of fintech supervision for financial services regulators. concluding remarks 4 / 5 bis central bankers'speeches the launch, in january 2019, of the global financial innovation network1 aims at acting as a network of regulators to promote information and knowledge sharing on emerging innovation trends as well as promoting joint policy work and regulatory trials by enhancing collaboration between regulators on key policy questions with the view to support the work of standard setting bodies, amongst others. all of us in this room who have a keen interest in promoting financial innovation should collaborate and support this initiative in the hope that a standardized and agreed sets of principles and practices for fintech and digital assets may unfold soon for the benefit of the market participants and regulators alike. summits, similar to this one, acts as incubators for sharing our thoughts and vision for this innovative sector. i am confident that this summit will foster cooperation and collaboration between regulators, investors and international organisations. i wish us all success in this area. gfin has been established by an international group of financial regulators and related organizations is an indication of the willingness of the global community to promote financial innovation in an efficient and orderly manner 5 / 5 bis central bankers'speeches