the cooperative credit banks merged into cooperative credit banking groups. table 1 liquidity coverage ratio ( per cent ) 31 january 2019 30 september 2019 31 march 2020 31 may 2020 significant banks less significant banks total banking system sources : consolidated supervisory reports for banking groups and individual supervisory reports for stand - alone banks. ( 1 ) banks directly supervised by the ecb. – ( 2 ) banks supervised by the bank of italy in cooperation with the ecb.

to enhance safety and soundness. regulators must be open to innovation in the banking system. our goal should be to build and support a clear and sensible regulatory framework that anticipates ongoing and evolving innovation - one that allows the private sector to innovate while also maintaining appropriate safeguards. we must promote innovation through transparency and open communication, including demonstrating a willingness to engage during the development process. by providing clarity and consistency, we can encourage long - 9 / 12 bis - central bankers'speeches term business investment, while also continuing to support today's products and services. a clear regulatory framework would also empower supervisors to focus on safety and soundness, while ensuring a safe and efficient banking and payment system. on cybersecurity, banks often note cybersecurity and third - party risk management as areas that raise significant concerns. cyber - related events, including ransomware attacks and business email compromises, are costly in terms of expense and reputation, and are time - consuming events that pose unique challenges for community banks. the maintenance of cyber assets and technology resources required to support a successful cybersecurity program are often difficult for smaller banks. regulators can promote cybersecurity, and stronger cyber - incident " resilience " and response capabilities by identifying resources and opportunities, such as exercises, for banks to develop " muscle memory " in cyber incident response. the federal reserve plays an important role in supervising banks and supporting risk management practices. for example, the federal reserve hosts the midwest cyber workshop, with the federal reserve banks of chicago, kansas city, and st. louis. 10 over the past couple of years, this workshop has provided a forum to discuss cyber risk among community bankers, regulators, law enforcement, and other industry stakeholders. community banks can also turn to the federal financial institutions examination council ( ffiec ) website, which includes the ffiec cybersecurity resource guide and links to other external cybersecurity resources. we know well that cyber threats pose real risks to the banking system, and we recognize that community banks may have unique needs in preventing, remediating, and responding to cyber threats. regulators should, therefore, ensure that a range of resources are available to support banks and seek further opportunities to help build bank resilience against these threats. community banks are integral to rural and underserved communities. how can the federal reserve support us in maintaining our presence in these areas, particularly amid ongoing consolidation trends? as i noted earlier, it