file a claim against the state even though the central bank has nothing to claim but rather has to defend itself, and what is more, to defend the diligence it has exercised against an implicit presumption of wrongdoing and an ambiguous standard of assessment. conclusion let me conclude. a well - functioning financial system is of vital importance for long - term, sustainable economic growth. the crisis laid bare elements of the financial system that were not functioning in the smooth and efficient manner required. the new regulatory regime put in place since the crisis provides the right framework for the banking system to function better in the future. but work remains to clear up the legacy of the crisis, particularly in terms of the overhang of npls. regulation alone is insufficient, and further effort is required of banks, in terms of both consolidation and refining business models, to return the sector to sustainable rates of profitability. but efforts are also required at national level to make national institutions function in line with european legislation. payment services is a further area where regulatory advances are of themselves insufficient to provide a working system that operates in a smooth and efficient way, that is still safe and respects european privacy provisions. banks now have a great opportunity to embrace the new technology and serve their customers in a new fashion. agreeing and implementing technical standards in a timely fashion will help foster the right conditions for a payment system that benefits everyone. 1 european central bank ( 2017 ), 2017 report on financial structures. 2 mersch, y. ( 2017 ), “ central banking in times of technological progress ”, speech at the bank negara malaysia 4 / 5 bis central bankers'speeches monetary policy conference, kuala lumpur, 24 july. 3 mersch, y. ( 2017 ), “ digital base money : an assessment from the ecb ’ s perspective ”, speech at the farewell ceremony for pentti hakkarainen, deputy governor of suomen pankki – finlands bank, helsinki, 16 january. 5 / 5 bis central bankers'speeches

##toare theagree blueprint serve the foundation forcan our global this isbythe house we're going to live in for a long time. let's build it to last. reviewing our privacy statement. 1 alternative reference rates committee, arrc commends decisions outlining the definitive endgame for libor, march 5, 2021. 2 alternative reference rates committee, progress report : the transition from u. s. dollar libor, march 31, 2021. 3 john c. williams, 901 days, remarks at securities industry and financial markets association ( sifma ), new york, july 15, 2019. 4 forum on ongoing innovation in reference rates for commercial lending, presentation materials, federal reserve bank of new york, new york, november 18, 2020. 5 alternative reference rates committee, arrc identifies market indicators to support a recommendation of a forward - looking sofr term rate, may 6, 2021. 6 alternative reference rates committee, second report, march 2018. 7 john c. williams, 537 days : time is still ticking, remarks at libor : entering the endgame, webinar, july 13, 2020. see also : financial stability board, reforming major interest rate benchmarks, november 20, 2020 ; and bank of england financial policy committee, interim financial stability report, may 2020. 8 alternative reference rates committee, the arrc selects a broad repo rate as its preferred alternative reference rate, june 22, 2017. 9 john c. williams, 537 days : time is still ticking, remarks at libor : entering the endgame, webinar, july 13, 2020. see also : federal reserve bank of new york, iosco compliance, as of may 2021. 10 alternative reference rates committee, best practices for completing transition from libor, as of september 3, 2020. 11 treasury market practice group financial benchmarks, as of may 2021. by continuing to use our site, you agree to our terms of use and privacy statement. you can learn more about how we use cookies by reviewing our privacy statement.