not point to the mortgage banks being particularly severely affected. this is because the mortgage loan is nearly always the last item of debt that a family with a tight budget defaults on. for most families, even considerable worsening of their finances would lead to only a small increase in the probability of falling behind with mortgage payments. the danish economy has stabilised. that is also true of the financial sector. for the first time since the collapse of roskilde bank in the early summer of 2008, the summer has been quiet – and even sunny. but there are, nevertheless, a couple of financial summer stories to tell. bis central bankers ’ speeches the first one is about f1 loans, i. e. mortgage loans with annual refinancing. the current debate was triggered by a word of warning from s & p. but the debate on the robustness of the construction behind the f1 loans is much older. particularly after the auction in december 2008, people began to say, “ suppose that... ”. suppose that the bonds had not been sold. at that time it was more the rule than the exception that markets froze. liquidity typically dried up if doubts arose as to the credit risk. households ’ long - term loans with annual refinancing are based on bonds with much shorter maturities. this has given mortgage banks qualities resembling those of ordinary banks, in that there may be “ runs ” on them. that risk did not exist under the old mortgage credit model since all loans were “ prefinanced ”. so the question is, what would happen in practice if a mortgage bank finds itself in a situation – due to uncertainty about the credit risk, perhaps – in which it cannot sell short - term bonds in connection with refinancing. the brief answer is that danmarks nationalbank will act as the lender of last resort – as it does for other banks – if the mortgage bank is solvent and can pledge adequate collateral. in practice, the latter would presumably be all the bonds not sold in the market. mortgage bonds, also bonds issued by the mortgage banks themselves, are now part of danmarks nationalbank ’ s collateral basis, i. e. they may be pledged to danmarks nationalbank as collateral. this option will limit the impact of a scenario in which bonds are difficult to sell. so the response to s & p and others is that this is not an immediate threat to financial stability in denmark. but this does not mean that a business

and cash positions often involves considerable manual matching and investigation. adding relevant references and invoice numbers in a structured format in the payment message itself could considerably improve end - users'own processing and reduce their costs of doing business. the iso 20022 messages need to be cultivated by a range of players. a number of key financial market infrastructures are scheduled to migrate to iso 20022 messaging in the next couple of years and support for the old'mt'standard for cross - border interbank messaging in swift is scheduled to end in november 2025. many financial institutions, though able to send and receive iso 20022 messages, have not yet made their core banking systems fully iso 20022 - compatible, which limits the data they can use and send. this disparity prevents the industry fully unlocking all of the benefits of iso 20022, and from passing those benefits on to their own customers. it is important that payment service providers continue to invest in their internal systems over the coming years. corporates may need to invest in their own systems to realise the benefits. there are many iso 20022 - compatible solutions provided by vendors ; indeed, we have been told by some corporates that they are iso ready and waiting on their payment services providers to provide a compatible interface. and all organisations will need to update their systems to the latest standards, and continue to do so as the standard evolves. i hope that my remarks coupled with the great proposals in the ideathon have demonstrated the importance and potential of iso 20022. to reap the benefits there is a role for a wide range of players from financial market infrastructures such as the bank, to financial institutions initiating, receiving and passing on payments, to corporates interfacing with their payment providers, to vendors and enterprise resource planning ('erp') providers facilitating payments and back - office systems. let me plant these ideas with you : 1. iso 20022 can bring many benefits your organisation. do you understand them, and what are you doing to place iso 20022 in your longer - term data strategy? 2. harmonisation is key to success. how can your organisation collaborate to support this? this could be through implementing iso 20022 payment messaging, driving iso 20022 improvements through harmonised procedures for remittance. 3. iso 20022 is not just a financial institution concern. the benefits extend to end users including corporates and smes. 4 / 5 bis - central bankers'speeches iso 20022 should not