vasileios madouros : developing a macroprudential lens in the regulation of investment funds, priorities ahead closing remarks by mr vasileios madouros, deputy governor of the central bank of ireland, at the central bank of ireland's macroprudential policy for investment funds conference, dublin, 20 may 2024. * * * good afternoon everyone. let me start by thanking all of you here today. first, our excellent line up of speakers and panellists, for their insights and the very rich discussions over the course of the day. second, all of you who took part in the conference, whether in person or online, for your active engagement throughout the day. and, last – but certainly not least – my colleagues at the central bank of ireland, for the excellent organisation of this event. i hope you all had a fruitful and productive day. from my own perspective, i've very much valued the range of insights, on what is a critical policy agenda. and the opportunity to listen to different perspectives : global and domestic ; regulatory, private sector and academic ; financial stability and investor protection perspectives. we covered many topics today – and i will not attempt to summarise what we've heard. but i thought i might use the opportunity of these closing remarks to look ahead. so let me outline what i see as four main priorities in the context of advancing this important policy agenda going forward. first, filling analytical gaps. the reality is that our collective understanding of the fund's sector contribution to systemic risk is still evolving. that is partly because the sector itself continues to evolve, whether in terms of its market footprint, the products offered or the markets invested. it is also because funds are part of a broader capital markets ecosystem, which means evaluating the sector from a financial stability lens is more complex. and, of course, funds are very different to banks, so we cannot – and do not – simply apply the same approaches that we have developed for the banking sector. 1 / 5 bis - central bankers'speeches in that context, continuing to invest in strengthening our understanding of the contribution of the sector to systemic risk remains an important priority. part of that also relates to filling data gaps. while we have made a lot of progress in this area in recent years, there are some dimensions that have proved more challenging. one example is developing consistent metrics of leverage across the non - bank financial intermediation ( nbfi ) sector globally

home there is a national code of practice whereby subscribers commit themselves to carrying out the changeover fairly and to seek no advantage from the conversion. the european central bank has agreed that banknotes may be frontloaded outside the euro area st from 1 december. it is likely that there will be significant demand for the currency outside the euro area. there is already considerable anecdotal evidence of high value banknotes being returned to central banks. another factor that must obviously demand attention at european level is the risk of counterfeiting. the european central bank is acutely conscious of this threat and it has in place arrangements to respond effectively and in a co - ordinated manner to any such danger, should counterfeiters seek to take advantage of the unique situation. as a precaution, the information campaign on the security features of the euro banknotes has been delayed as long as possible. the security features will be th unveiled on 30 august. there seems to be a perception that cross border retail money transfers of the new currency within the euro area may be much cheaper and simpler than before. regrettably, this is not the case in the short term at least. the reality is that the national payment systems, including cheque clearing systems, have not so far been harmonised and there are no short term plans to develop a standard cross border system. in any event there would seem to be particular difficulty associated with developing a cross border paper based system. customers may of course use their credit card and atm cards cross border as before. the use of cheques in the euro area varies hugely. in ireland and france cheques are still the most widely used payment instrument, accounting for almost one half of all noncash transactions. in germany and austria, on the other hand, they account for less than 5 per cent of such transactions. i am aware that the european commission is taking an interest in the cost of cross border transfers within the euro area with the aim of achieving equalisation of banking charges as soon as possible. from september onwards publicity campaigns for the euro introduction will be intensified both at european and national levels. in such a large logistical operation, it is probably inevitable that there will be some local difficulties. there is a strong confidence, however, that in general the changeover will go well and it will help to establish the euro as a powerful symbol of european identity. i have outlined the various operational issues that arise in relation to the launch of the euro. it is appropriate to reflect at