The markets appreciated that effort and, after the summer, Spanish banks were again able to issue debt on the international wholesale markets. However, Ireland’s sovereign debt crisis again increased the strains on the government debt markets and a fresh lack of confidence in the Spanish banking sector and misgivings as to the quality of its assets resurfaced. Those events highlighted the need for more rapid and far-reaching action to confront the difficulties facing a part of the Spanish banking system. Immediately, the Banco de España stepped up its transparency requirements for the asset portfolios on which doubts centred. Thus early this year all savings banks were obliged to make public their exposure to the real estate development sector, their doubtful assets, their standard exposures under surveillance and their provisioning levels, and to specify the type of collateral securing those exposures. Also, they were asked to publish information on their foreclosed assets and on their exposure to households through residential mortgages so that, although this is not an area of concern, the market could distinguish between risks which at times – unjustifiably – it treated similarly. Further to the recently ratified Royal Decree-Law, the Spanish Parliament has taken an additional step to strengthen bank solvency. Happily, it was understood that, while important, what had been achieved thus far was not sufficient and that it was necessary to take further measures to hasten the restructuring process.

Technological progress, innovation, and new models of competition are changing the financial industry and there will undoubtedly be winners and losers. Understanding all of the factors that drive successful transformations will be a critical insight for both risk managers and supervisors. Conclusions 3/4  BIS central bankers' speeches  The financial sector is large, complex and constantly evolving due to a wide range of technological, business, and macro factors. Your job, and ours, is to be vigilant and open-minded in our thinking, constantly questioning our traditional assumptions and scanning the horizon to understand how the risk landscape is changing. The topics covered at today’s conference are some of the most important risks that the industry faces. Climate change and digital transformation are two powerful trends with the potential to fundamentally change financial services. We all need to be forward-looking and proactive in order to promote our ultimate goal of a safe and sound financial system that supports the sustainable provision of financial services and economic growth. Thank you for your attention. 1 NOAA National Centers for Environmental Information (NCEI), Billion-Dollar Weather and Climate Disasters  (2019), National Oceanic and Atmospheric Administration. 2 The Impact of Higher Temperature on Economic Growth, Riccardo Colacito, Bridget Hoffmann, Toan Phan and  Tim Sablik, Economic Brief, August 2018, No. 18–08; Climate Change and the Federal Reserve, Glenn Rudebusch, FRBSF Economic Letter, 2019–19, March 25 2019; Fourth National Climate Assessment, Volume II: Impacts, Risks and Adaptation in the United States, U.S. Global Change Research Program.