one, but in some ways it is related to the previous point, because the international framework for messaging standards provides for transmission of a significant amount of additional data. i think there is widespread acknowledgement within the payments industry that international standards should be adopted wherever possible. timeliness of payments. as communications technology advances, there is little doubt that people are expecting greater immediacy in many areas, and payments are no exception. it is currently not possible for me to make a payment to someone who banks with another bank and for them to be able to use those funds within a short space of time. in some circumstances this lack of capacity can be a significant problem – for instance when someone is waiting on an emergency government payment. this seems like an area we could improve on and it is increasingly becoming a focus overseas. likewise, the fact that payments cannot occur between banks out of normal business hours seems out of line with the ‘ always on ’ world we now live in. addressing payments. cheques are always a good reminder of the things that are missing in our electronic payments. i can pay someone with a cheque when all i know about them is their name. but if i want to make an electronic payment, i bis central bankers ’ speeches typically need to know a 6 - digit bsb number and a 9 - digit account number, things the receiver probably cannot readily provide. people are finding partial workarounds that make use of mobile phone numbers or email addresses, but we are yet to have a truly seamless system. all of these are areas where any progress will have to be made co - operatively, because they are characteristics of the network, not just of the individual players. but that also means that a decision to move ahead in any of these areas needs to take into account the costs and benefits across the system as a whole, both for service providers and end - users. that raises the broader question of whether there needs to be a change in governance arrangements in the industry, so as to make them more conducive to innovation in general. there are a number of reasons why co - operative innovation can be hard to achieve. industry participants have differing commercial interests, and even factors like the timing of their investment cycles can make coordinated actions difficult. a change in messaging standards or timeliness of payments might benefit the public, yet remain hard to achieve because there is no proprietary benefit to the individual service providers. the challenge is to find a way of determining when innovations of that nature are

digital money and infrastructure could increase the efficiency and resilience of wholesale markets where money and assets are tokenised. broader financial stability risks 2 / 3 bis - central bankers'speeches before i turn the floor open to questions, it would be remiss not to briefly mention that our focus on financial stability extends beyond the areas of payments and market infrastructure. as i discussed last year, and as set out by recent editions of the financial stability review, we see risks to financial stability as taking two broad forms. 5 traditional cyclical risks generated from within the financial system these include the effects of higher interest rates or an economic downturn on the resilience of households, firms and banks. these types of risks have long featured in our surveillance work and will continue to do so. non - cyclical risks generated from outside the financial system these have become more prominent in recent times and there is generally little historical precedent to guide us in navigating them. foremost here are geopolitical risks, operational risks ( including but not limited to cyber risks ) and the risks associated with climate change. our assessment is that this second category of risks continue to build in troubling ways. they not only have the potential to be systemic, but could also cut across the financial system, economy and society in complex ways. for these reasons, the rba and other member agencies comprising the council of financial regulators are stepping up the intensity of work in these areas. at the same time, the worsening threat landscape – which is more structural than cyclical in nature – requires industry to actively prepare for a much more challenging operating environment in the years ahead. thank you. 1 rba ( 2024 ),'payments system board 2024 annual report '. 2 rba ( 2024 ),'merchant card payment costs and surcharging ', issues paper, 15 october. 3 rba and australian treasury ( 2024 ),'central bank digital currency and the future of digital money in australia ', september. 4 jones b ( 2024 ),'financial innovation and the future of cbdc in australia ', speech at the intersekt conference, melbourne, 18 september. 5 see, for instance, rba ( 2024 ),'financial stability review ', september ; jones b ( 2023 ),'emerging threats to financial stability – new challenges for the next decade ', sydney, 31 october. 3 / 3 bis - central bankers'speeches