was issued within the single supervisory mechanism to define supervisors ’ expectations in this area. moreover, banks were asked to carry out a self - assessment of their level of compliance with the expectations formulated in the guide, and to set out detailed adjustment plans if delays in compliance were to emerge. a thorough examination of these plans will be one of the elements to be considered in next year ’ s supervisory review and evaluation process. furthermore, in 2022, significant banks will undergo stress tests specifically devised to assess the intensity of the financial risks stemming from climate change, following the analyses already being conducted by the european central bank and the national authorities on the impact of such risks on the overall stability of the financial system. therefore, financial intermediaries are expected to show a strong commitment to measuring and managing climate - related risks. regulation with the presentation of a proposal by the european commission, negotiations will soon be stepped up for the transposition in the european union of the latest agreements reached within the basel committee and known as final basel iii. this step marks the completion of a process begun more than ten years ago which, in light of the experience gained with the global financial crisis, led to a significant revision of international regulatory standards. the committee announced that it does not intend to propose further reforms in the near future, so as to enable financial intermediaries to operate in a stable regulatory environment. the crisis brought about by the pandemic has been a challenging testing ground for the reforms completed up until now. it is fair to say that, so far, the test has been passed. higher capitalization levels and the large liquidity and capital buffers have enabled the banking system to take on a global shock of exceptional magnitude effectively, while ensuring adequate lending to the hardest hit households and firms. the regulatory framework proved sufficiently flexible to undergo rapid adjustments when necessary. the basel committee ’ s decision, taken following the outbreak of the pandemic, to delay by one year the time frame for the implementation of the final basel iii rules was both wise and appropriate. it is now necessary to proceed according to the pre - set schedule, keeping the european regulatory framework as consistent as possible with the international standards. the negotiations will be complex and their goal will be to reconcile several needs : not to penalize european banks compared with those from other jurisdictions ; to take into account the specific features of our continent ’ s banking system when there is a well - founded and robust case for justifying deviations from global standards ; and to leverage in

digital finance could make it difficult to catch up in the future, so much so that they could compromise slower banks ’ ability to compete successfully in the market. i have pointed out on more than one occasion that innovation, besides offering enormous opportunities, also exposes banks to risks. fraud, cyber attacks and the improper use of artificial intelligence constitute threats against which banks must defend themselves. furthermore, credit 6 / 10 bis central bankers'speeches institutions are increasingly outsourcing significant parts of their operations to third parties, running the risk of losing full control of operational risk. this issue is one upon which international regulatory bodies have been focusing, partly in light of the trend of relying upon just a handful of operators to supply certain services. the financial stability board and the basel committee recently published documents for consultation in this area. in europe, the commission has opened negotiations on a proposal for a directive and a regulation to improve digital resilience in the financial sector ( digital operational resilience acts, doras ). the proposal seeks to encourage the development of safe and reliable digital services by strengthening and harmonizing it security, governance structures and the management of risks stemming from the use of third parties to provide these services. collecting data on these issues, which we began to do last year, will allow us to better quantify and identify the risks that the new eu legislation will seek to address. the bank of italy has a long - standing commitment to supporting and promoting innovation in the financial sector. a few years ago, we opened the fintech channel, one of the first tools for communicating with industry through which we have been able to provide clarification and to understand the needs of the firms that operate in the fintech sector. a few months ago, with the birth of our new innovation centre, milano hub, we created an environment in which operators, academics and enterprises can engage in debate and discussion, share their analysis and research and offer support in the development of innovative projects capable of producing widespread benefits. the ministerial decree just published, which governs the conditions and procedures to be followed in testing fintech solutions ( the regulatory sandbox ), is another step forward in promoting innovation whilst continuing to safeguard against risk. this is, however, a delicate step, which requires that the utmost care be taken in striking the proper balance between the interests of operators and of customers. in the coming months, the bank of italy, consob and ivass will be working hard to further define the new regulatory framework. we