bank switching platform for various payment channels that will easily integrate local and international payment systems. additionally, instantaneous access to bank accounts has become the basis for digitalisation of the economy. the change in consumer attitudes and new technologies has led the bank of mauritius to embark in the implementation of an instant payment system, concurrently to the national payment switch. the implementation of the instant payment system will, further, support the e - government initiative by promoting electronic payments through all channels in the government agencies through instant or near real time payments. cyber - security and cyber - resilience policies and capacities in 2017, the financial stability board ( fsb ) assessed the financial stability implications from fintech and noted that addressing the following three priority areas is seen as essential to supporting an authority ’ s efforts to safeguard financial stability while fostering more inclusive and sustainable finance. these priority areas are – firstly, managing operational risk from third - party service providers ; secondly, mitigating cyber risks ; and thirdly, monitoring macro - financial risks that could emerge as fintech activities increase. the bank of mauritius is currently enhancing its supervisory guidelines in line with the recommendations of the financial stability board. a new guideline on information technology risk management is currently being finalized and will be issued to financial institutions. the guideline will provide a framework for the establishment of sound practices and processes for managing the risks that emanate from the use of it systems. 3 / 4 bis central bankers'speeches with respect to macro - financial risks, the bank of mauritius and the financial services commission have been collaborating to mitigate such risk and enhance the stability of the financial services sector. enhancing the regulatory framework against money - laundering and terrorist financing in line with development in fintech. to mitigate potential aml / cft risk, the legislative framework must be made applicable to fintech driven financial services as well as the companies offering them. the framework must also be extended to crypto currencies and crypto assets. the financial action task force ( fatf ) has engaged, since 2016, a constructive dialogue with fintech and regulation technology ( regtech ) sectors to support innovation in financial services, while addressing the regulatory and supervisory challenges posed by emerging technologies. the fatf has agreed to initiate a project on investigative best practices related to virtual currencies / crypto - assets to assist law enforcement in the light of the growing risks. additionally, the fatf ’ s guidance and standards are being reviewed to determine if changes are necessary to clarify their

file a claim against the state even though the central bank has nothing to claim but rather has to defend itself, and what is more, to defend the diligence it has exercised against an implicit presumption of wrongdoing and an ambiguous standard of assessment. conclusion let me conclude. a well - functioning financial system is of vital importance for long - term, sustainable economic growth. the crisis laid bare elements of the financial system that were not functioning in the smooth and efficient manner required. the new regulatory regime put in place since the crisis provides the right framework for the banking system to function better in the future. but work remains to clear up the legacy of the crisis, particularly in terms of the overhang of npls. regulation alone is insufficient, and further effort is required of banks, in terms of both consolidation and refining business models, to return the sector to sustainable rates of profitability. but efforts are also required at national level to make national institutions function in line with european legislation. payment services is a further area where regulatory advances are of themselves insufficient to provide a working system that operates in a smooth and efficient way, that is still safe and respects european privacy provisions. banks now have a great opportunity to embrace the new technology and serve their customers in a new fashion. agreeing and implementing technical standards in a timely fashion will help foster the right conditions for a payment system that benefits everyone. 1 european central bank ( 2017 ), 2017 report on financial structures. 2 mersch, y. ( 2017 ), “ central banking in times of technological progress ”, speech at the bank negara malaysia 4 / 5 bis central bankers'speeches monetary policy conference, kuala lumpur, 24 july. 3 mersch, y. ( 2017 ), “ digital base money : an assessment from the ecb ’ s perspective ”, speech at the farewell ceremony for pentti hakkarainen, deputy governor of suomen pankki – finlands bank, helsinki, 16 january. 5 / 5 bis central bankers'speeches