, as they were already clear even before its outbreak, but they have been undoubtedly intensified by the covid - 19. in particular, this is the case of the deficiencies in governance and profitability. further, the sustainability of banks ’ business model still represents one of the most relevant supervisory concern to date. this is why banks should thoroughly grasp the growth opportunities offered by the digital transformation. digitalisation challenges remain a key priority in supervisors ’ agenda. the pandemic crisis boosted the ongoing digital transformation of banks, stemming from a wide range of root causes, such as a widespread low profitability associated to structural inefficiencies and growing competition with new and agile fintech actors. nowadays, the rising of the open banking paradigm reduces the advantages banks historically had on the most traditional and less complex banking services. however, pursuing a digitalization path clearly means to make large upfront investments. as a result, it is not surprising that the ssm is shedding lights on banks ’ risks associated to digital transformation, often regarded as a panacea for reinventing unviable business models. beyond keeping on dealing with the more traditional risks, supervisors should assess new and emerging risks linked to the new scenario – namely ict and strategic risks – giving them a more specific weight in their ordinary assessments. in my opinion, while remaining neutral on the market players ’ single choices, we should encourage the banking system in taking advantage of the opportunities of fintech and promoting digitalization. then, we will be in the position of ensuring the level playing field, assessing business models or the proposals of new services and products from the banking sector in a homogeneous way : competition in laxity as well as unnecessary binding constraints must be avoided. 3. crisis management the eu and global framework for dealing with banking crises improved dramatically in the aftermath of the 2007 / 2008 global financial crisis. the focus of the reforms at fsb level mainly pointed to the systemically important banks, in line with the original aim of addressing the “ too - big - to - fail ” issue. at european level, the international standards set out by the fsb were adopted through the bank recovery and resolution directive ( brrd ), which established a harmonised and efficient crisis management regime, in particular for large banks able to build up enough tlac / mrel without radically modifying their funding structure. 2 / 4 bis central bankers'speeches after six years from the implementation of the brrd in the eu, the resolution planning activity of the european

value payment system launched on 30 june 2005 and introduced nationwide has significantly improved the payment methods of rural credit cooperatives and contributed to providing a level playground for the rural credit cooperatives. this pilot project of bank card services tailored for migrant workers is another important measure by the pbc to speed up rural financial infrastructure building and increase competitiveness of rural credit cooperatives. in recent years, thanks to the efforts of many parties, bank cards have seen rapid development in china. with issuance increasing significantly, card acceptance environment and payment function improving continuously, band card has become the most frequently used means of non - cash payment. but the development has not been evenly distributed among regions ; therefore we have always attached importance to introducing this modern payment instrument to rural areas and enabling farmers to benefit from it. this pilot project in guizhou represents a business innovation that offers migrant workers the convenience of withdrawing their deposit from a different location. it also helps broaden the business scope of bank card operating institutions such as card issuing banks, rural credit cooperatives and china union - pay co. ltd, brings a win - win situation for all and promotes a rapid development of the industry. this tailored service effectively offers another way for migrant workers to send money to their home town. according to statistics, there are more than a hundred million migrant workers in mainland china that produce fund flow totaling several hundred billion yuan between urban and rural areas each year. the flow is expected to increase by dozens of billion annually in the future. at the moment, the fund remittance system is not fully developed for migrant workers as the fund transfer mode is not diversified and takes a long time. the need of these workers for a convenient, safe and rapid way of transferring fund is yet to be satisfied and many of them have to personally carry large amount of cash home. with the opening of tailored bank card service, rural migrant workers can transfer the fund deposited at their place of work to the rural credit cooperatives at their hometown and withdraw cash at the rural credit cooperatives with a swipe of card, in a matter of several seconds. this not only offers a new way of fund transfer, but also helps migrant workers use card more than cash and build a socialist new countryside. comrades, the pilot project of bank card services tailored for migrant workers is of far - reaching significance. we should look at this project from the strategic point of serving the people and the economy in the rural areas and explore, through the project, effective ways and experiences of rural bank