services, and the use of monetary policy tools to influence economic activity. 1 / 5 bis - central bankers'speeches as technology continues to develop, we are seeing our monetary and financial system also evolve and we all need to be ready for change. meeting the challenge : transforming regulation and supervision now, it's becoming something of a truism to say that the global economy is fragmenting while the world, including countries such as ours, starts to undergo significant economic transitions – in demography, in technology, in climate – while also experiencing a period of unprecedented innovation1. and change isn't just coming ; in some parts of the world it is already here. in the face of a changing ecosystem, central banks, regulators, businesses and consumers all have to adapt, transform and evolve. for our part, we are changing how we work and how our frameworks reflect an increasingly digital world. while this transformation is across the whole of the central bank, i want to point to some of what we've done so far. we have been changing how we engage with innovation in financial services, enabling us to deepen our understanding of innovation, better inform our regulatory approach, better explain to innovative firms what being regulated entails and better embed a regulatory culture in fledgling and fast growing firms. since last year's conference, where we announced a consultation on our approach to innovation engagement, we have successfully launched an innovation sandbox programme. 2 we have already received a substantial number of applications to our combating financial crime sandbox, from across the innovation ecosystem ( from early - stage startups, scaling firms, established financial services firms, and forward - thinking partnerships ). the projects submitted are exploring new technologies and developing innovative methods to tackle financial crime, benefiting both the financial system and consumers. in the coming weeks, we will be announcing the selected participants and we look forward to sharing the insights and learnings that emerge from that work. in addition to our engagement with innovation, we'll continue to modernise our other frameworks. these include our consumer protection code while we work with our european partners on the digital euro and on negotiations regarding the new eu financial data access regulation, among other things. our most comprehensive response to the changing financial system comes in the form of our new supervisory framework. 3 2 / 5 bis - central bankers'speeches this is a direct response to the rapidly - changing and interconnected financial system which we supervise, recognising that we need to change

, i can mention that, in addition to the enforcement role, we have just announced the creation of new senior level positions with responsibility for markets supervision and policy and risk. supervision will be calibrated to the risks posed by the different firms in the sector and will involve applying the existing rule - book, strengthened as necessary to plug the holes revealed by the crisis. in particular, we will not be slow to implement new stronger rules, being developed as we speak, by international bodies such as the basel committee. despite the extensive powers already available to the regulatory authorities, it would be useful and appropriate to have clarity on a number of additional points ; these are being discussed at present with the department of finance with a view to their inclusion in the proposed legislation restructuring the central bank. one particular area relates to the requirements of confidentiality, which ( as they are currently being interpreted ) seem to go well beyond what is necessary or appropriate for the purpose of ensuring privacy of customers and commercial interests. as things stand, the regulatory staff can end up appearing passive and defensive when called to speak on specific issues in public. a final aspect of safety and soundness to which i would like to refer is the admission of large and complex export - oriented firms into the irish market. i welcome the participation of foreign - owned firms – both those aiming to supply the domestic market and those that are export - oriented – they provide competition and business opportunities. but the crisis has revealed the reputational risks to ireland of having a failure in such an entity. this means that we have to redouble our efforts to ensure that only sound institutions are allowed to enter and that they are comprehensively supervised to ensure that they continue to be sound. i will certainly not allow ireland to become a soft option for firms or activities that are no longer welcome elsewhere. this means more supervisory staff with the necessary skill levels ; these can be paid for by a levy on the supervised firms ( i think we should move towards a 100 % chargeback basis ). i also feel, though, that specific steps need to be taken to ensure that there is no expectation that the state would come in to take exceptional steps to rescue such entities. 3. consumer protection consumer protection cannot and will not be ignored in the regulatory structure. failures here are not as spectacular as a solvency crisis, but can be as damaging to the affected consumers. there will be no downgrading of this aspect of the regulatory work. the statutory codes of conduct for mortgage and sm