we need both a resilient financial system and adaptable supervisors. to ensure stability, the financial system needs to be able to weather rapid changes that produce shocks. and regulators and supervisors need to adapt to an ever - changing economic landscape if they are to continue to effectively safeguard the financial system. after all, unexpected crises often come from unobserved risks that were allowed to grow over time and materialise. that is why macroprudential policy must remain alert to the emergence of new challenges as and when they appear. we therefore need to encourage resilience wherever it is lacking, and adapt to change whenever necessary. with this, i now open the sixth esrb conference. 1. welcome remarks pre - recorded on 24 november 2022. 2. esrb ( 2022 ), “ warning of the european systemic risk board of 22 september 2022 on vulnerabilities in the union financial system ”, 22 september. 3. feder, a., fred - torres, s., southwick s. m., and charney d. s. ( 2019 ), “ the biology of human resilience : opportunities for enhancing resilience across the life span ”, biological psychiatry, vol. 86, no 6, pp. 443453. 4. hosseini, s. barker, k., and ramirez - marquez, j. e. ( 2016 ), “ a review of definitions and measures of system resilience ”, reliability engineering & system safety, vol. 145, pp. 47 - 61. 5. latest data point q2 2022. based on the methodology outlined in cera, k. ( 2022 ), “ measuring marketbased and non - bank financing of non - financial corporations in the euro area ”, box 2 in ecb committee on financial integration ( 2022 ), “ financial integration and structure in the euro area ”, april. 6. behn, m, rancoita, e. and rodriguez d ’ acri, c. ( 2020 ), “ macroprudential capital buffers – objectives and usability ”, macroprudential bulletin, ecb, no 11, 19 october. 7. lagarde, c. ( 2022 ), “ monetary policy in a new environment ”, speech at the european banking congress, 18 november. 8. enria, a. ( 2022 ) “ better safe than sorry : banking supervision in the wake of exogen

to help strengthen our financial system ’ s capacity to withstand shocks. resilience as adaptability the second element of resilience is the ability of the financial system to adjust to new conditions. this holds for both the system and those who oversee it. as banks adapt to a range of technological, structural, and environmental challenges, the regulatory framework needs to adapt as well. in march this year, the esrb published a blueprint for how to make the eu macroprudential framework fit for the next decade. [ 12 ] it is crucial that the european commission ’ s review of the macroprudential framework for the banking system be pushed ahead as soon as possible. that is because we must contend with potentially new sources of financial stability risk. for example, one area in which the financial system is adapting to new technologies is in so - called cryptoassets and decentralised finance. crypto - assets are exceptionally volatile and pose considerable risks to consumers. [ 13 ] after peaking in november 2021, the price of bitcoin fell by almost 75 % in the space of a year. and only last month we saw the chaotic collapse of ftx, a crypto - asset exchange once valued at usd 32 billion. while the impact of such episodes has been contained so far, systemic risk could easily arise from increasing interlinkages between the crypto ecosystem and the traditional financial system. policymakers, including macroprudential authorities, must carefully consider if and how the crypto ecosystem needs to be regulated. europe has been at the forefront here with the agreement on the markets in crypto - assets regulation ( mica ). its swift implementation is key to closing regulatory gaps, with mica providing a consistent framework for crypto - asset issuance and service provision in the eu. but this can only be a first step. from a financial stability perspective, financial regulation could be enhanced along several dimensions. for instance, sectoral financial regulation needs to address the risk from interlinkages through financial institutions ’ exposures to crypto - assets. monitoring needs to be complemented by clarity on the regulation of lending and “ staking ” activities. [ 14 ] and finally, market developments in decentralised finance should be taken into consideration. conclusion let me conclude. heraclitus is said to have observed that there is nothing permanent except change. and we can certainly relate to those words in an era increasingly defined by shocks to our economy. change is at the root of why