in those regions where many people still do not have access to face - to - face financial services. this has been made possible by the spread of smartphones, which function as a platform for providing financial services, skipping the stage of face - to - face financial services. this leapfrogging has the advantage of providing immediate access to the fruits of financial innovation without the switching costs of shifting from existing information technology systems. moreover, it also brings substantial benefits in the context of financial inclusion. notably, the evolution of digital technologies is not limited to traditional banks ; non - bank financial intermediaries ( nbfis ) increasingly leverage digital platforms to offer innovative services, such as cross - border funds transfers. on the other hand, it should be noted that the digitalization of finance could pose new risks to the stability of the financial system. it is becoming ever more important to ensure operational resilience, for example, by managing cyber and third - party risks, and to introduce anti - money laundering and combating the financing of terrorism ( aml / cft ) measures. crypto assets, tokenization, artificial intelligence ( ai ), and other new technologies may bring opportunities, but they could also pose risks to the financial system. a critical challenge for financial authorities lies in harnessing the advantages of the digitalization of finance while effectively managing risks to ensure the stability of the financial system. as financial services and providers continue to diversify, adopting the 3 / 5 bis - central bankers'speeches principle " same activity, same risk, same regulation " has become increasingly important. however, a practical challenge persists in determining which activities and risks should be classified as " the same " under this principle. given the significant progress in digitalization witnessed in the apac region, it is imperative for financial authorities to collaborate and engage in comprehensive discussions on this topic. c. growing need to address climate change on the financial front the third change is the growing need to address climate change on the financial front. the apac region accounts for a large share of the world's carbon dioxide emissions, and the region is susceptible to the adverse effects of climate change, with massive flood damage increasing in recent years, for example. this is why financial authorities in this region are particularly interested in addressing climate change. climate change represents a global challenge necessitating active participation of diverse entities acrosssociety and the economy. on the financial front, efforts are being pursued based on two overarching perspectives. the first

25. 02. 2021 latin american economies : developments and challenges consejo empresarial alianza por iberoamerica ( ceapi ) pablo hernandez de cos governor ladies and gentlemen, good afternoon. first of all, i would like to thank the consejo empresarial alianza por iberoamerica ( ceapi ) and its president, nuria vilanova, for the kind invitation to participate in this event. i should also like to take this opportunity to acknowledge the role that the ceapi plays to support the business and investment of spanish, portuguese and latin american firms. as you all well know, latin america is a very important region for spain owing to our close cultural and economic ties. it is likewise important for the banco de espana, as evidenced by one of the initiatives in our strategic plan for 2020 - 2024 : 1 positioning the banco de espana as a leading central bank for latin america. this objective entails engaging in a series of actions, such as organising events, entering into and implementing cooperative agreements with central banks and institutions in the region, and the provision of services and international cooperation, all with a medium and long - term strategic view. it also means working to extend and improve our institution's analytical capacity and its visibility vis - a - vis the region ’ s economies and financial systems. fortunately, it is already viewed as a benchmark in this regard within the eurosystem. allow me to briefly remind you of some figures on spain ’ s exposure to latin america as a whole ; this exposure is particularly relevant in terms of the stock of direct investment, given that around 31 % of all spanish foreign direct investment assets are located in the region. particularly prominent are the positions in brazil and mexico. trade is likewise significant, with 4. 8 % and 7. 8 % of all spanish exports of goods and services, respectively, heading to the region. since the early 1990s, the internationalisation of spanish banking has largely focused on latin america, in addition to the european union, the united states and turkey. consequently, the region has taken on considerable significance for the spanish banking https : / / www. bde. es / f / webbde / ssicom / 20200115 / plan _ estrategico _ 2024 _ en. pdf. system. indeed, on pre - pandemic data, spanish banks'exposures2 to latin america represent nearly one - fifth of the system ’ s total