have just described, the snb continues to take the view that targeted mortgage loan - related measures are necessary in the residential investment property segment. the snb supports the federal council ’ s proposal to raise the capital requirements for highltv loans in this segment. specifically, this would involve increasing the risk weights for loan tranches exceeding two - thirds of the residential investment property ’ s value. the snb welcomes the swiss bankers association ’ s readiness to consider a revision to the selfregulation guidelines as an alternative to the federal council ’ s proposal. such a revision would reduce the ltv ratio and shorten the amortisation period for new loans financing residential investment property. in the snb ’ s assessment, the domestically focused banks hold sufficient capital to cover their risk exposure. despite a fall in profitability in 2018 as a result of a further reduction in interest margins, they have been able to maintain their capital situation. snb stress tests continue to suggest that most of these banks have a sound capital base, enabling them to cover any losses they might incur under adverse scenarios. the proposed measures should help to ensure that the level of risks incurred in the mortgage market remains bearable in the future. for its part, the snb will continue to monitor developments on the mortgage and real estate markets closely, and will regularly reassess the need for an adjustment of the countercyclical capital buffer. page 3 / 3

bis - central bankers'speeches credit access is a critical enabler of economic growth. insolvency systems that clearly define creditor rights and recovery mechanisms create a more predictable environment for lenders. in barbados, structured credit evaluation mechanisms have made it possible for msmes ( micro, small, and medium enterprises ) and start - ups to secure funding. this has resulted in a notable increase in the number of small businesses accessing finance, which in turn drives job creation and innovation. with lenders reassured that their interests are protected in cases of borrower default, the overall volume of credit disbursed has grown significantly. 3. supporting msmes micro, small, and medium enterprises ( msmes ) form the backbone of caribbean economies, representing more than 70 percent of enterprises. yet, they are disproportionately affected during economic downturns. simplified insolvency processes tailored to msmes allow these businesses to recover from financial setbacks without facing undue burdens. the introduction of fast - tracked procedures for small businesses has been a game changer in barbados, ensuring that small - scale enterprises can restructure efficiently and return to profitability. one example is the case of a family - owned agricultural business in st. lucy that used these mechanisms to recover from debt and expand operations. our region must prioritise systems that preserve these enterprises, given their importance in our economies. 4. post - disaster recovery given our vulnerability to natural disasters, insolvency systems must facilitate rapid recovery. after hurricane beryl, for example, the government of barbados provided financial assistance to the fishing industry, underscoring the need for pre - emptive measures such as mandatory insurance for vulnerable sectors. beyond this, the integration of insolvency planning into disaster response frameworks has minimised the economic impact of climate - related events. key challenges in the caribbean while the benefits of robust insolvency systems are evident, the caribbean faces unique challenges that hinder their full realisation. these obstacles require not only local efforts but also regional cooperation to overcome. let me elaborate on some of the most pressing issues we face. 1. institutional weaknesses a recurring challenge in many caribbean nations is the lack of institutional capacity to enforce insolvency laws effectively. strong laws on paper mean little without the necessary infrastructure to implement them. barbados has taken proactive steps to address this issue by investing in judicial training programmes aimed at equipping judges with the tools to handle complex