do. [ slide 16 – contribution of banks to systemic risk ] according to this important report by asc additional policy measures are needed to “ reduce excessive private credit creation by banks and mitigate its risks, re - balance the eu ’ s financial structure away from banks and mitigate the risks from banks ’ “ non - bank ” activities ”. among the additional policy measures the report also recommends the implementation of structural reforms. the group ’ s proposal for mandatory separation i take these recent reports as providing important support for our work in the high - level expert group on reforming the structure of the eu banking sector. in october 2012 we proposed mandatory separation of a deposit bank and a trading entity within the banking group to complement, not substitute the ongoing regulatory reform. two avenues as alternative ways forward were considered in the group. we came to the conclusion that structural reform is needed. [ slide 18 – two alterative avenues ] the motivation for our decision was the following : international monetary fund ( 2014 ) global financial stability report, chapter 3 : how big is the implicit subsidy for banks considered too important to fail? esrb ( 2014 ) is europe overbanked? reports of the advisory scientific committee no. 4 / june 2014. bis central bankers ’ speeches [ slide 19 – rationale for mandatory separation ] 1. we wanted to limit the spill - over of benefits from the deposit guarantee system and any implicit government guarantees to certain trading activities of banks. without separation, the explicit and implicit guarantees would distort the market mechanism and spur the deposit banks to unhealthy risk - taking and expansion in their trading activities. 2. we saw the need to simplify the structure of large, complex banks. reducing complexity by means of separation facilitates management and implementation of incentives and it facilitates supervision and monitoring by outside stakeholders such as shareholders, bank creditors and other market participants, thus reinforcing market discipline. this will reduce the probability that the bank gets into trouble in the first place. 3. if a bank would nevertheless get into severe problems, it is easier to impose recovery and resolution measures if the structure of the bank has been simplified ex - ante. it is crucial to make credible the resolution also of the largest and most trading - intense banks in europe. 4. we saw the need to shield the deposit taking bank from excessive risk - taking in trading activity and from exposures to entities in the shadow banking system. 5. we emphasised the need to reduce the mixing of two very different management cultures in

and signal responsible ocean stewardship to the market. i would invite all sids to give due consideration to the opportunities that can be untapped through such issuances. the third key aspect is the building of robust regulatory frameworks that enhance the resilience of the financial system and increase the credibility of the sdg strategies and products being offered. as i iterated earlier, sids tend to have structural vulnerabilities that make them more susceptible to external shocks. it is therefore primordial to have the right policies in place to preserve monetary and financial stability and thus boost public confidence and facilitate capital flows across the financial system. in addition to maintaining a resilient and credible financial system, sids central banks may also be strategically positioned to promote the growth of domestic climate financing through enhanced risk and opportunity discovery by working towards improving climate information architectures and climate finance market structures. ladies and gentlemen, when it comes to the climate agenda, the bank of mauritius has taken the lead in facilitating an enabling environment for the development of sustainable finance across mauritius. the reality is that sids generally, have less developed financial markets 3 / 5 bis - central bankers'speeches which makes raising funds on the international markets difficult. sids equally face the challenge of rating agencies actions. as you are aware, rating agencies play a vital role in generating trust and confidence in debt instruments beings issued by sovereigns in the private sector. in mauritius, we have given due consideration to these challenges and have invested ourselves in developing the right eco - system to accompany the development of sdgfinancing. this adds to the fact that mauritius is rated by both moody's and s & p as the only investment grade ifc in africa. the banking sector in mauritius also continues to play a pivotal role in attracting international investors. at the level of the bank of mauritius, we have left no stone unturned when it comes to further modernising the banking sector and its offerings to compete in international markets for sustainable finance. starting in june 2020, the bank engaged with financial institutions to create awareness of climate - related risks as well as opportunities from the transition to net - zero. in july 2020, the bank joined the network of central bank and supervisors for greening the financial system ( ngfs ) to widen its collaboration with other central banks regarding sustainability - related research and technical resources. in june 2021, the bank of mauritius published a guide on the issuance of sustainable bonds which aims to ensure the integrity of the