the appropriate way to address effectively the consequences of the adverse economic environment. the russian invasion in ukraine has elevated further the importance of climate risk due to its interconnectedness with geopolitical risk. the ongoing effort to reduce the dependence on russian energy frontloaded the need to reduce carbon emissions and move promptly towards a greener economy. the banks have a key role to play in this effort through financing the transition as well through providing adequate disclosures to the markets. we therefore expect them to adopt both their business models and risk 1 / 2 bis - central bankers'speeches management frameworks to incorporate climate and environmental risks. the fact that certain banks have started making tangible steps in this regard is a positive development, but there is still some way yet to be travelled. the management of climate risk by banks is on the top of the supervisory agenda. we acknowledge the challenge that this poses especially for smaller banks. however, we do expect them to act more decisively in the said direction. by default, this will ultimately also target the banks'clientele and the submission of detailed climate related information in order to feed the banks'risk management processes. the challenges noted above, require significant up - front investment before reaping the benefits. the banks should proceed without undue delays to the transformation of their business models to address a new challenging business environment. complacency emanating from short term profits is not a viable option. sustainability through transformation is the way forward. thank you. 2 / 2 bis - central bankers'speeches

work as the benefits to all stakeholders and especially bank customers will be tangible in terms of cost and time savings. this will benefit the entire cypriot economy including the banks themselves. having said this, i wish to emphasise that digitisation on its own does not bring full efficiencies or solve the issues i mentioned earlier. the association of cyprus banks and the ceos and chairmen of banks must make the necessary internal changes and training to make servicing of clients more efficient. let me be clear, european banking regulations are the same across europe. that's why they are called european. hence differences on banking practices and efficiencies are because of banks'management and their practices. the cyprus banking sector practice is less efficient than european counterparties. as i mentioned before, it's time for banks and stakeholders to act. in conclusion, 4 / 5 bis - central bankers'speeches the world's economic system has been through a lot in recent years, from the challenge of the pandemic to the impact of the war in ukraine. policymakers around the world should focus their actions on dealing with elevated uncertainty and rising inflation, while safeguarding growth prospects. the cbc remains alert in gauging these challenges, as proven by our actions that safeguarded depositors and public finances with the controlled transaction relating to rcb and also on the client onboarding digitisation project we are close to launching on our own initiative for the benefit of the economy, it is up to us to come through these challenges unscathed or even stronger, wiser and better prepared for the future because the world geopolitically, economically and financially is changing fast in fundamental and lasting ways. we have done it before, we can do it again. 5 / 5 bis - central bankers'speeches