was that risks depend to a large extent on how banks are set up. have they agreed on floating rate loans with their customers or on fixed rates? how long is their average asset duration? for a majority of large european banks in the test, higher interest rates would lead to largely contained risks and also a higher net interest income in three years ’ time. an interest rate hike therefore poses individual challenges for banks and requires individual remedies. problems caused by the monetary policy change particularly in the us are, of course, not confined to financial institutions. there is a general and empirically tested idea that emerging countries may also suffer. historically, we have witnessed large capital inflows to emerging countries in so - called “ risk on ” periods, where capital was abundant in advanced economies and when conditions nurtured the “ search for yield ”. flights to safety or monetary tightening of the us dollar have led to capital outflows from emerging countries, currency depreciations, and financial crises. recently, in the spring and summer of 2013, talks about monetary tapering led to sharp exchange rate reactions. however, emerging countries are not completely at the mercy of global factors such as the monetary policy of large economies or international economic cycles. one obvious precautionary measure is to build up foreign exchange reserves. this “ safety shield ” allows these countries to dampen depreciation pressure. indeed, emerging economies have accumulated a large stock of foreign exchange reserves in the last 15 years. recent empirical research by the bundesbank1 indicates that foreign exchange reserves are indeed an effective tool to counter depreciation pressure. but it also shows that the monetary “ safety shield ” is not a cure - all. in order to keep private investors in the country, a country should rather strive for a healthy policy mix that targets domestic economic development. 3. bundesbank representatives in mumbai ladies and gentlemen our concern for financial stability requires us to cast our net wide and always keep track of the 2 / 3 bis central bankers'speeches latest developments in the most important economies of the world. for the bundesbank, our representatives and representative offices abroad fulfil an important role in this respect. i would like to first thank mr alexander sattler for his service in mumbai from october 2014 until september of this year. he has been here during eventful times. among other things, india has seen a strong reform momentum – the reform of tax on goods and services being the most recent result. india ’ s

klaas knot : acta, non verba - interlinking fast payment systems to enhance cross - border payments speech ( virtually ) by mr klaas knot, chair of the financial stability board and president of the netherlands bank, at the cpmi ( committee on payments and market infrastructures ) conference on the " progress and priorities on the g20 cross - border payments roadmap ", florence, 11 july 2024. * * * thank you for inviting me to speak today. i am sorry that i cannot be there with you in person. just as rome wasn't built in a day, the splendour of florence didn't arise overnight. both cities are testaments to the power of time, artistry, and persistent dedication. at the fsb, we don't build anything alike – but we are ambitious in a similar way. and we take on projects that reach the same level of complexity. the g20 roadmap to enhance cross - border payments are not immediate and easy tasks. the roadmap is ambitious in its goal to improve the cost, speed, availability and transparency of crossborder payments globally. the complexity of this undertaking cannot be overstated. the cross - border payments ecosystem is made up of countless individuals, businesses, and governments, relying on a network of national and regional payment services providers and infrastructures. and these themselves are subject to the laws and regulations of every jurisdiction in which they operate. as most of you will likely recall, the fsb and our partners, including the cpmi, began this journey in 2020. we spent the first two years exploring a wide range of possibilities to address the frictions that cross - border payments face. this included practical arrangements, operating practices, technological solutions and regulatory changes. the work involved stocktakes and in - depth analyses. and it produced best practices, and recommendations for how to improve existing arrangements and to develop potential new arrangements. in 2021, we published quantitative targets to define the ambition of the roadmap and establish a shared, concrete vision of the goals to be achieved. we then identified the actions we would need to take to achieve the targets by end - 2027. based on this, we transitioned, in february 2023, to a practical implementation phase, consisting currently of 15 priority actions. these priority actions are designed around three interconnected themes. the first theme focuses on improving payment system interoperability and extending rtgs operating hours and access policies.