a wide range of supervisory aspects, in areas such as licensing, capital adequacy, risk management, and more. in total there are 25 principles. but, i stress, these are principles, not rules, and require further specification. the basel committee considers that many of these principles would also be appropriate for nonbank financial institutions that offer deposit and lending services similar to those provided by banks. but the committee also recognizes that some of these categories of institutions may be regulated differently from banks as long as they do not hold, collectively, a significant proportion of deposits in a financial system. however, they need some form of regulation commensurate to the type and size of their transactions. how should we tailor regulation to the unique characteristics of microfinance activities? the basel committee is currently working on illustrating what forms regulation can take, keeping in mind the diversity of the sector. that is why this effort is a collective one, and why the committee works together with supervisors from all over the world in the committee ’ s international liaison group, as well as the imf, the world bank, cgap and regional groups of banking supervisors. concluding remarks 13. ladies and gentlemen, i will conclude. microfinance is booming. it is now widely acknowledged as an effective way to reach out to the poor. and, as i said in the beginning, this belief is not just confined to charitable institutions, but felt the world over. still, the current market size forms only a small part of the estimated global demand for microfinance services. as such, the broadening of financial services offered by microfinance institutions, specifically the deposit - taking facilities offered by many microfinance institutions, is a welcome development. in parallel with this, the role of the prudential supervisor will become ever more relevant. prudential supervision can contribute to inclusive financial systems by taking account of the specific characteristics of microfinance while not disturbing the international level playing field. the efforts of the basel international liaison group will be an important step forward in this regard. furthermore, adequate supervision may enhance the perceived legitimacy of microfinance institutions, improve their operational management and extend their access to funding. in this way, microfinance not only contributes to the economic development of a country, but also enriches the financial system and financial supervision. so maybe, rather than “ a billion to gain ”, it ’ s a question of “ billions to gain ”! thank you.

leonardo badea : on financial ( in ) stability and systemic risks in a world with high uncertainty and multiple disequilibria closing remarks by mr leonardo badea, deputy governor of the national bank of romania, at the15th edition of the seminar on financial stability issues " on financial ( in ) stability and systemic risks in a world with high uncertainty and multiple disequilibria ", sinaia, 4 october 2024. * * * distinguished guests, esteemed colleagues, ladies and gentlemen, first of all, allow me to express my sincere regrets for not attending the seminar in person, due to an overlap with the last meeting of the national bank of romania's board, in the current mandate. i am, however, pleased to have had the opportunity to join you virtually today, following the stimulating discussions that took place in sinaia. as we conclude the 15th edition of the seminar on financial stability, i wish to express my sincere appreciation to all of you for your active engagement and valuable contributions. over the past few days, there were explored a wide range of critical issues that shape the stability of the global financial system, from the main challenges faced by policymakers in the current geopolitical context, to the evolving risks of digital finance or the vulnerabilities in the real estate sector. financial stability today goes beyond managing traditional risks such as liquidity, credit or real estate booms ; it now requires an understanding of technological advancements, climate change, and geopolitical uncertainty. moreover, mounting fiscal imbalances and high levels of both public and private debt in many countries represent other elements to closely monitor. the first panel provided an excellent coverage of the key systemic risks we are currently facing, along with the challenges they pose to financial stability. with that in mind, the natural question arises regarding the appropriate measures to implement. in this context, the second panel took a deep dive into the topic by exploring the effectiveness of macroprudential policy. considering the vulnerabilities observed in housing markets across the globe, we gained valuable insights from the panel's examination of potential spillover effects from the real estate sector on financial stability. lastly, i found the dynamic discussions on emerging challenges particularly engaging, especially regarding the interaction between the rapid advancement of ai technologies and the stability of the financial sector. as emphasized in today's panel, artificial intelligence has the potential to fundamentally transform financial systems and is swiftly 1 / 3 bis - central bankers'speeches evolving into a