but if too many canadian households start to become dangerously over - leveraged, policy - makers have several macroprudential tools they can use. our experience with the mortgage - interest stress test shows how effective these tools can be. the bottom line is that the private and public sectors together need to be acutely aware of financial system risks and vulnerabilities as the economy recovers. gri has an important role to play in analyzing and highlighting these risks and keeping us focused on what may be coming down the road. risks from climate change finally, let me say a few words about a longer - term risk that is accelerating — the impact of climate change and the transition to a low - carbon economy. the financial system has a critical role to play to support the real economy through the transition and to help businesses and households manage new climate risks. to do this, the financial system has to both manage its own climate risks and help direct savings to productive and sustainable investment. physical and financial risks from more frequent and severe weather events, including damage to assets such as real estate and infrastructure, will almost certainly grow. many types of business also face significant transition risks related to the revaluation of assets and the reassessment of projected earnings and expenses. if not appropriately priced and managed, both types of risk have the potential to bring about significant losses for financial institutions and could even threaten the stability of our financial system. sound risk management starts with sound measurement. companies need reliable, consistent and comparable ways to measure and state their exposure to climate risks. financial institutions, too, must understand and be transparent about their exposures. investors are increasingly demanding this transparency. if we are going to do a better job assessing, pricing and managing climate risks, we need better and more decision - useful information that combines climate - data analysis with economic and financial information. this will make the financial system and the real economy more resilient. and it will strengthen the ability of the financial system to fulfill its most critical role, which is to allocate savings to its most productive uses. this will help canadians take advantage of sustainable investment opportunities. 4 / 5 bis central bankers'speeches as part of its responsibility to promote financial system stability, the bank is accelerating its work to understand the implications of climate change for the canadian economy and financial system. last year, we developed a multi - year research plan focused on climate - related risks. and we joined the network of central banks and supervisors for greening the financial

, but this is about to change with the upcoming mica regulation. mica will ensure that licensing and the obligation to follow aml standards become defining features of the sector. in lithuania, this sector is large. the number of crypto exchanges in the country leaves lithuania second in the eu, which exposes our financial system to sizable risk. this is not due to the number of exchanges per se, but because of the deficiencies often found in the areas of adequate staffing and competencies, not least when it comes to the application of aml practices. this is not a circumstance for which we have the privilege of waiting for mica. and we are not waiting. lietuvos bankas has been working in close partnership with the ministry of interior, the ministry of finance, and other ministries on measures to further improve the regulation of crypto - asset service providers. one month ago, changes were made to law on the prevention of money laundering and terrorist financing. we, as a country, have taken a step forward by increasing capital requirements for crypto firms and strengthening measures if aml practices are breached. third, on regional dialogue. as illicit activities transcend borders, collaboration becomes not just beneficial, but imperative. as the financial systems of the nordic - baltic countries are closely interlinked, active cooperation in identifying and managing risks at the regional level becomes paramount. thus, in 2023, lithuania, our international partners from the nordic - baltic region, and the international monetary fund concluded a technical assistance project on anti - money laundering. the outcomes of this project included recommendations on the ongoing monitoring of cross - border flows, with regional information exchange on macro - trends, and better identification of countries with potential money laundering risks to the nordic - baltic region. besides this project, i am proud to report that the imf has highlighted lithuania's progress in the area of money laundering prevention over the last few years. this assessment is not alone : a similar view is held by other bodies, including moneyval. the international developments of the last year should also not be neglected. in 2024, after 3 years of work, the council and the european parliament concluded political negotiations on the anti - money laundering and anti - terrorist financing package. a political agreement on amla has also been reached. dear colleagues, as benjamin franklin once said, if you fail to plan, you are planning to fail. this is not our path. geopolitical fragmentation and digitalisation constitute two important changes, neither