2020 is bound to go down in history due to the once-in-a-century health crisis and economic contraction. Governments, central banks, and regulatory agencies of various countries responded quickly to alleviate the impact of the real economy, stabilized the situation and avoided catastrophic consequences in the global market. With the imminent mass vaccination, the focus of financial policy response to the epidemic will shift from providing financial liquidity and financial stability to bridging the long-term rift caused by the crisis: including realizing the redistribution of capital and labor across industries and avoiding permanent loss of productivity. To achieve this redistribution and to deal with longer-term sustainability challenges, we need a new financial system.
First, the reforms after the 2008 financial crisis pushed systemic financial risks outside the banking system, and non-bank financial intermediaries (NBFIs) took over these risks. The resilience of the new system has inspired us to deal with crises. Second, this crisis has accelerated the process of economic digitization and the transformation of the work, savings and payment methods of enterprises and individuals. How will technology support the digitization of the financial industry in the novel coronavirus pneumonia era, and how will it help regulators to maintain the safety and sustainable development of the industry?
