opening remarks by gerardo esquivel hernandez, deputy governor of banco de mexico, on the occasion of the 16th annual conference of the international operational risk working group ( iorwg ) mexico city, september 20, 2022 good morning, good afternoon, good evening, everyone. on behalf of banco de mexico, i am pleased to welcome you to the 16th annual conference of the international operational risk working group ( iorwg ), hosted by banco de mexico, and jointly organized along with banco de espana and the federal reserve bank of philadelphia. this event takes place in a context in which the covid - 19 pandemic has tested the resilience of countries and institutions, including central banks. we have faced unprecedented challenges to achieve an extremely difficult balance between different objectives : maintaining the continuity of central banks'operations, prioritizing the health of the staff, and making sure that central banks are able to fully perform their functions and attain their objectives and purposes. although central banks already had operational continuity strategies, most of them were not entirely prepared for the type of contingency we experienced during the pandemic. however, the mere existence of these strategies was a key element that helped us to rapidly find new ways to perform and maintain operations. in fact, the pandemic contingency transformed our institutions into even more resilient organizations, capable of coping with adverse scenarios, by developing prevention, response, adaptation, recovery, and learning mechanisms. the degree of commitment and responsibility that we have with our institutions, which is a fundamental pillar of financial stability in our countries, was truly brought out during this emergency. in terms of resilience, we rapidly adapted our work schemes and transitioned to a general remote work setting which, in the case of banco de mexico, had only been implemented as a business continuity strategy for critical processes and in very specific areas. by doing so, we confirmed that the central bank staff is the most important and valuable asset of the institution. its capabilities, solidarity, adaptability, and flexibility were key elements in getting through the pandemic, and contributed decisively to fulfill the mission of our institution uninterruptedly. the lessons learned from what we have undergone over the last two years will certainly strengthen us as central banks. we must now adjust to the challenges that this new environment imposes on us. we are now moving from a world of face - to - face interaction to a hybrid reality that has allowed us to broaden the possibilities

only consistent momentum in credit growth can lead to strong net benefits for the economy. the recent financial reform the recently approved, multi - layered financial reform contains measures that may strengthen the banks ’ institutional framework, allowing for more robust and sustainable credit expansion, among other benefits. three sets of measures that stand out seek more effective propertyrights protection for creditors, more formal regulation and the promotion of competition among financial intermediaries. on the subject of creditors ’ property rights, the reform makes significant progress towards correcting problems observed in the application of the bankruptcy law approved in 2000. specifically, the new legislation closes loopholes which debtors had been using to prolong the debt resolution process in areas such as intercompany liabilities, director and manager responsibility, while it makes bridge lending in cases of liquidity crunches more feasible. the reform reduces obstacles to expediency in the judicial process to recover collateral, illustrated by the possibility for debtors to choose the court level and select assets to be seized. an important innovation is the founding of specialized commercial - law courts at the federal level. in the field of regulation, the reform provides rules for the authorities to manage the resolution or liquidation of banks in cases of liquidity squeezes and insolvency. the specifics cover lending of last resort with equity shares as collateral, bank contingency plans for adverse scenarios, and ring - fencing actions, for example, in the case of majority shareholder problems. an expedient bank judicial liquidation process and a legal framework for transfer of assets and liabilities are established. the capital requirements to comply with basel iii guidelines are now mandatory under mexican law. the procedures for applying liquidity requirements are also determined. with respect to competition in the sector, a new law facilitates mortgage substitution by debtors, allowing them to choose banks offering more favorable terms. other measures that work in the same direction include greater facility for the mobility of deposits and consumer loans, meaning that customers can transfer their accounts and loans to other banks with less red tape and shorter delays. importantly, bundled sales of financial products and services are prohibited. these measures will potentially foster a more competitive, consumer - friendly and healthy banking system. along with other reforms, they may contribute to higher potential economic growth. however, as is true with the overall current reform agenda, the effectiveness of these measures will depend heavily on the quality of pending legislation needed to put the changes in place, and adequate implementation. the current economic cycle after a full year of