capital buffer for trading activities and leaving the separation of activities conditional on supervisory approval of a recovery and resolution plan, rather than a mandatory separation of banking activities. both basic alternatives and their motivation are presented in the report. 2. second, effective and realistic recovery and resolution plans must be drawn up and maintained by the banks, as proposed in the commission ’ s bank recovery and resolution directive. the resolution authority should request a wider separation than the considered mandatory separation above if this is deemed necessary to ensure resolvability and operational continuity of critical functions. 3. the use of designated bail - in instruments is strongly supported by the group. the position of bail - in instruments within the hierarchy of debt commitments in a bank ’ s balance sheet must be clear so that investors know the eventual treatment in case of resolution. banks should build up a sufficiently large layer of “ bail - inable ” debt. such debt ( or an equivalent amount of equity ) would increase the overall loss - absorptive capacity, decrease risk - taking incentives, and improve transparency and the pricing of risk. 4. the group proposes to apply more robust risk weights in the determination of minimum capital standards and more consistent treatment of risk in internal models. once the basel committee has concluded its review of the trading book, the commission should assess whether the results would be sufficient to cover the risks of both deposit banks and trading entities in europe. also, the treatment of real estate lending within the capital requirements framework should be reconsidered, as well as maximum loan - to - value ( and / or loan - to2 bis central bankers ’ speeches income ) ratios included in the instruments available for micro - and macro - prudential supervision. 5. finally, the group considers that it is necessary to augment existing corporate governance reforms by specific measures to 1 ) strengthen boards and management ; 2 ) promote the risk management function ; 3 ) rein in compensation for bank management and staff ; 4 ) improve risk disclosure, and 5 ) strengthen sanctioning powers. bis central bankers ’ speeches

olli rehn : going digital – trends in payments during and after the pandemic opening by mr olli rehn, governor of the bank of finland, of the 10th economics of payments conference “ going digital – trends in payments during and after the pandemic ”, 20 october 2021. * * * accompanying presentation : www. bis. org / review / r211217f _ presentation. pdf ladies and gentlemen, dear friends, warmly welcome to the tenth economics of payments conference. these conferences have been held once every two years and have brought together academic researchers and central bankers for high - level discussions on money, payments and financial market infrastructures. the previous event was hosted by the bank for international settlements and committee on payments and market infrastructures in basel in 2018. i am glad we at the bank of finland have the honor of hosting this 10nth conference. originally, the event was planned to take place physically here in helsinki, but it became necessary revise the plan. so, here we are now, ready to open the conference, with most of you joining us virtually. in my opening remarks, let me discuss three topics : first, the development of electronic payments ; second the revised monetary policy framework of the eurosystem ; and finally, related to both of these, the digital euro. the covid - 19 pandemic has in the past 1½ years taught us many lessons about working from home and about virtual meetings – but also about conferences which can take place successfully among people scattered around the world. this exceptional time has had an impact our behavior, and it has also affected the payments and payment systems in many different ways. we will learn more about this in the second session today. based on a recent analysis by the bank of finland, the pandemic has accelerated many existing trends and developments in payments. the transition to digital methods of payment has leapfrogged forward. contactless payment methods – perceived as hygienic – are preferred, and mobile payments have many new users, while the number of cash transactions at the point of sale has decreased. several studies do suggest that many of these changes are likely to become permanent. with this in mind, it is important to discuss and clarify the central bank ’ s policy and goals on electronic payments. the overarching goal in this regard is to ensure the availability of safe and efficient tools for the necessary transfers of money in the economy. what could this mean today in more concrete terms? in