with the transposition of this directive into the national laws of the member states, national authorities are endowed with the tools required to restructure or unwind banks in a timely and orderly manner, minimizing the costs of bank failures. another fundamental measure introduced by the brrd is the “ bail - in ” tool. in future resolutions and restructurings of banks, shareholders and creditors will have to contribute to the absorption of losses and capital recovery of the failed banks. in addition, banks themselves will finance the national resolution funds introduced by the brrd. from 2016, the single resolution fund, which will be built up over a period of eight years, will replace these national funds in member states participating in the ssm and the srm. see also the communication “ making the best use of the flexibility within the existing rules of the stability and growth pact ” issued by the european commission in january 2015. jean monnet ( 1976 ), memories, paris fayard. daniele nouy, chair of the supervisory board of the ssm. “ the banking union, one year on ”, center for european reform, london, 21 october 2015. bis central bankers ’ speeches further progress is required in relation to the third pillar of the banking union, a single deposit guarantee scheme. admittedly, a new eu directive on deposit guarantee schemes, which aims to address the current weaknesses by ensuring a uniform level of protection of depositors throughout the european union and to eliminate market distortions, was adopted in april 2014. nonetheless, an effective crisis management framework should include a credible single deposit guarantee scheme. in light of the pan - european solutions that have been adopted for the ssm and the srm, it would be consistent to take a similar approach for the third pillar of the banking union. as announced some days ago, the commission will make a legislative proposal on the first steps towards a common european deposit insurance scheme by the end of this year. strengthening of the macro - prudential framework while it is important to supervise individual institutions, it is equally important to safeguard the stability of financial systems as a whole by containing systemic risks. back in 2010, the european parliament and the european council agreed on the eu regulations establishing the european systemic risk board ( esrb ), which is responsible for the macro - prudential oversight of the financial system within the european union. since then, the macro - prudential framework in europe has been strengthened. the crd iv and crr, for instance, introduce

##2s ) settlement platform. in doing so, they are providing efficient and secure payment systems and ensuring that payments throughout europe can be made smoothly. one thing is for sure : the joint operation of complex systems such as these can only succeed if all parties trust one another and pull together at all times. and that ’ s exactly what we ’ re doing! in addition, we ’ re working on making payment systems fit for the future. just last week, for example, experts from the bundesbank and the banca d ’ italia came together to exchange ideas on the possibilities for settling securities in central bank money using innovative market solutions based on distributed ledger technology ( dlt ). 1 ladies and gentlemen, payment systems are just one example of the especially close cooperation between germany 1 / 3 bis central bankers'speeches and italy within the eurosystem. for this reason, i am delighted that we are now sending a representative to the german embassy in rome to strengthen our ties even further. this is because europe and the eurosystem are undoubtedly facing significant challenges. first of all, we need to tackle the coronavirus pandemic and its fallout. how can we ensure a successful economic recovery? how do we roll back the emergency measures? and what structural changes will the pandemic bring about over the medium and long term? furthermore, we must continue to develop european economic and monetary union. how do we deal with the sharp rise in public debt in the euro area? how can we reconcile the single monetary policy with different national fiscal and economic policies? will we be able to strengthen the capital markets union and complete the banking union? and, finally, we must grapple with the pressing issues surrounding the megatrends of demographic change, decarbonisation and digitalisation. above all, digitalisation is making waves in the financial sector and presenting challenges to central banks like the bundesbank and the banca d ’ italia. what will the digital financial system of tomorrow be like? who will play what roles within that system? and how will we make payments in the future? with cash? book money? digital money? or with central bank digital currency? as different as all of these questions are, they do have one thing in common : they all require a joint european response. in this regard, it is absolutely clear that the need for international exchange, consensus and collaboration will continue to grow. for this reason, we at the bundesbank believe that it is vital to redouble