line with the implementation of sepa. to achieve a truly single market it is of utmost importance that european or broader standards are developed and used already at the start - up phase of innovative e - payments products, so that innovation become truly european and not only national. the responsibility of european authorities and central banks is to create an environment that ensures this. we have to prevent from causing a fragmentation of e - payments, because there is a stressing demand at each national market where such scheme has not yet been available to come up with something. it would save lot of resources for each concerned country if they could resort to a truly european scheme. it is very important that any type of national or european regulation ( e. g. the sepa end date regulation ) do not hamper innovation by rules carved into stone and integration by countryspecific waivers and niche products. finally i would like to touch upon the issue of payment infrastructures. at the outset of the euro era it was expected that the fragmentation of retail payment markets would be abolished. some national clearing houses have merged, some pan - european clearing bis central bankers ’ speeches houses have emerged, but still national clearing houses are the dominant institutions in this field in most of the members states. i am convinced that the use of sepa standards and achieving interoperability will increase the competition between the clearing houses and thus accelerate the process of consolidation which will lead to economies of scale. but if we achieve this we might face a duopoly or monopoly situation, and a new task will emerge how to handle the pricing by the winners in such a new environment. * * * let me conclude. i am convinced that when european and national institutions take up the tasks that are ahead of them then we will have better integrated and more efficient european retail payment market. this is of utmost importance as we understand the significance of the public sentiment. as abraham lincoln said in a speech delivered at bloomington on 26 september 1854 : “ with public sentiment, nothing can fail ; without it nothing can succeed. ” bis central bankers ’ speeches

banks. just last week, the basel committee on banking supervision, the main global standard - setter for the prudential regulation of banks, published its “ principles for the effective management and supervision of climate - related financial risks ”. these principles have been prepared in a basel committee task force that i co - chair. they are a major milestone, as it means that supervisors from all around the world now unanimously confirm not only that climate risks may be material, but also that both banks and supervisors urgently need to contend with them. the basel committee backed this up by announcing it expects implementation of these principles as soon as possible and that it will monitor progress in these fields across its member jurisdictions. importantly, the basel committee ’ s principles promote many of the practices that the ecb had signalled as crucial for the proper management of c & e risks. for instance, they emphasise the importance of assessing the materiality of climate risks and considering their potential impact on banks ’ business models. they also highlight the need to fully incorporate material risks into banks ’ own internal capital and liquidity adequacy assessment processes. moreover, the principles expect a bank ’ s board and senior management to ensure that the bank ’ s internal strategies and risk appetite statements are consistent with any publicly communicated climaterelated strategies and commitments. this expectation comes at a timely moment as more and more banks publicly commit to aligning their financing activities with the objectives of the paris agreement. failing to meet their commitments may expose these banks to a number of risks, including reputational risks as well as any potential prudential risks of misalignment with these objectives. this is particularly true for jurisdictions, such as the european union, which have binding climate targets. addressed to both banks and supervisors, these principles seek to improve, on the one hand, banks ’ risk management and, on the other, the supervisory practices linked to climate - related financial risks. furthermore, the revisions to the capital requirements directive currently under discussion by the eu co - legislators further reaffirm the ecb ’ s mandate in this area by broadening the supervisory toolkit to address environmental, social and governance risks, and by explicitly requiring banks to have concrete plans to address c & e risks arising from misalignment with eu climate targets. the ecb ’ s supervisory agenda on climate indeed, since 2020 the ecb has been starting to implement many of the principles that the basel committee has now established on a global scale. it has now been two