still holds true in this type of situation : the strengths that we have built up when the crisis hits will be the strengths that enable us to weather the storm. evidently the supervisor ’ s aim must be to ensure that the banking sector is a fortress against the storm and not an added problem that we have to face at the worst time imaginable. recently, it has been frequently said that the banking sector is in much better shape than it was before the previous crisis. this will allow it to become part of the solution. in any event, crises are, by definition, periods of transition and covid - 19, despite its specific features, will be no exception. i believe this crisis will serve as a catalyst which will speed up many of the trends that we have already seen and discussed on many occasions at our meetings. first, as regards the importance of digitalisation. second, in respect of the need to gain in efficiency and cut costs. also, naturally, as regards the criticality of good governance and risk control, underpinned by the best international practices which will allow institutions to react appropriately to such changing circumstances. and, above all, regarding having a sound and sustainable business model for the medium and long term. we do not know what the future holds for us, but what we do know is that the better prepared we are, the better we will fare. before i conclude, let me apologise for not having made the most of this address to introduce a supervisory “ wedge ”. i do not want to stray more than is necessary from the key idea today, namely the 50 years that we are celebrating and which, above all other considerations, represent a history of success. i must, therefore, express my heartfelt congratulations to you. i trust that our frank and sincere communications may continue, all the more so since i have become deputy governor. this clearly does not mean that we will always agree about everything, but rather quite the opposite. as i always say, productive supervisory dialogue is characterised by mutual understanding, where we agree but especially where we disagree. i hope that the next 50 years are at least as successful as the 50 years we are celebrating today. i would like to think they may be slightly less intensive than the last 10 years. thank you very much.

this has also been recognized within the fsb. both banks and resolution authorities should consider how they can ensure that the execution of bail - in is effective. executing bail - in is a complex process that involves many actors and actions by both banks and authorities. bail - in also has distinct cross - border elements, as many banks have issued bail - inable instruments in other jurisdictions. this is an area the fsb will be focusing on this year. i am glad that the srb and the banks are also making progress with the development of bail - in playbooks. funding in resolution i will now turn to the topic, that will be discussed this afternoon : “ funding in resolution ”. this topic, which has often been referred to as the elephant in the room, is now firmly on the radar screen of banks and authorities alike. within the fsb we have observed that work has slowly started to ensure that funding and liquidity will not be the constraining factor for an orderly resolution. resolution funding strategies and plans are being prepared. banks have started building up core capabilities, by developing automated scenario modelling and forecasting to address funding in resolution, in line with the fsb ’ s guidance on funding strategy elements for an implementable resolution plan. however, this takes time and it requires a different mindset from bankers. so here we encounter a third area of recommendations, after those on operational continuity and tlac. the area of bank ’ s capabilities on funding in resolution. preparing for a resolution scenario goes beyond normal liquidity stress testing and contingency planning in going concern. banks must be able to estimate and address potential funding needs in a variety of stressed situations and resolution scenarios, by applying even more conservative assumptions than in normal stress tests. in addition, banks need to identify and monitor the collateral that can be mobilized in a resolution scenario. so, i would like to urge everyone around the table to dedicate sufficient resources to this topic tasks and not to consider this as something already covered by recovery planning. fout! onbekende naam voor documenteigenschap. despite efforts undertaken, liquidity gaps may eventually arise when an institution is put into resolution. in particular in a slow - burning crisis situation, there is a risk that in the run - up to resolution, more and more assets are being encumbered or disposed, as part of the recovery strategy. a consequence of this, inevitably is that when the institution is declared failing or likely to fail,