the decision taken by the ecb for significant banks, allowed all supervised entities to operate temporarily below the level of the pillar 2 guidance, the capital conservation buffer and the lcr. the esrb has issued a recommendation that the relevant authorities request financial institutions under their supervisory remit to refrain from paying dividends, buying back shares and paying variable compensation until at least january 2021. there is a case, therefore, for building up safeguards against moral hazard and excessive build - up of risks in markets. we need to reflect, among other things, on a macroprudential framework for non - bank finance. while basel iii comprehensively redesigned the regulatory framework for banks, change has come more slowly to nonbank financial institutions ( nbfis ), especially asset managers, despite the increased size, concentration, interconnectedness and speed of action of the industry. the awareness is growing that nbfi risks involve externalities. with no ‘ basel accord ’ for non - banks, there is enough regulatory variation across jurisdictions to allow for reflection on what worked best, or is likely to work best, in managing market stress and avoiding endogenous amplification of shocks. in the past few years, the first fsb and iosco recommendations on liquidity and leverage in asset management have opened the way ; work on this should continue. an aside on the gold holdings of central banks – answer to a question from the audience. there are historical reasons behind central banks ’ large holdings of gold – a relic, whether ‘ barbarous ’ or otherwise, of the times when gold was the official basis for the international monetary order. there is also an aura of solidity around gold, an instinctive idea that it can be a safe haven in the event of extreme disruptions. there are, in fact, also eminently rational, tecnical reasons to keep gold as part of a central bank ’ s assets. portfolio diversification is essential for central banks ’ long - run financial soundness and thus, ultimately, for their independence. some diversification between ‘ paper ’ assets ( if you will allow me this expression in a paperless world ) and a commodity, specifically one that people often turn to in troubled times, does make sense. according to the escb ’ s accounting rules, capital gains on gold reserves are not recorded in the profits and loss account, but they do show up in the overall capital position and, in this way, they contribute to the balance - sheet coverage of the bank

strengthening institutions and developing a pluralistic and competitive local private sector will greatly contribute to mitigating instability and preparing countries to transition out of conflicts and fragility. ida should deploy its suite of analytical and financing tools for conflict prevention and remain engaged during conflicts. overall, we reaffirm the recommendations that we have laid down in the non - paper on fragility, conflict and violence in ida21, together with other donor countries and the africa, eca, mena and lac ( haiti ) borrowers'representatives. job creation and business development across ida countries is our north star in improving local opportunities, especially for the young. this should mitigate the drivers of forced migration, while continuing to improve regional infrastructures, food security, access to energy and health systems and pandemic preparedness. the international finance corporation ( ifc ), working together with ida, should allocate additional resources to better support local companies and business associations. the most recent caf measures for ida allowed us to smooth out the financial implications of earlier frontloading, while also strengthening capital for the next cycles. we look forward to future work to enhancing development impact and further optimizing ida's balance sheet. 2 / 3 bis - central bankers'speeches our constituency appreciates the central role of africa and the partnership built around ida. italy has embraced this same spirit with the mattei plan, a renewed approach to development cooperation that revolves around the gradual agreement of goals and targets co - designed with african countries. it will be rolled out in synergy with international partners, in the areas of education and training, agriculture, health, energy and water. to embark on a path of sustainable growth, the african continent should also play a stronger role in clean energy products'global supply chains. italy fully supports the " resilient and inclusive supply - chain enhancement " ( rise ) initiative, launched in october 2023, including with a financial contribution. italy will work closely with the world bank to ensure a swift implementation of rise during its g7 presidency. above all, a successful ida21 replenishment requires a collective effort from all – donors, borrowers and management. the italian g7 presidency is actively supporting and coordinating this effort. 3 / 3 bis - central bankers'speeches