strategic implications of a transition to a more sustainable economy. understanding the impact of climate change, however, comes with significant challenges including the long time horizon, data gaps, the need for new model development, inherent complexity and fundamental uncertainty. all of this suggests that there is much work ahead of us. taskforce on climate - related financial risks just as banks are building awareness of climate - related risks, the supervisory community is similarly developing capacity in this area. i will now turn my attention to the specific work of the 2 the committee basel committee ’ s task force on climate - related financial risks ( tfcr ). has noted that climate change may result in physical and transition risks that could impact the 1 / 2 bis central bankers'speeches safety and soundness of individual financial institutions and have broader financial stability implications for the banking system. in response, the committee established the tfcr to undertake work on climate - related financial risks in february of 2020. i am acting as a co - chair of the task force, along with frank elderson, executive director of supervision at the netherlands bank. in the first phase of work, the tfcr conducted a stock - take of members ’ existing regulatory and supervisory initiatives on climate - related financial risks. 3 this work highlighted the increasing focus on climate - related risks. to take the work forward, the tfcr is following a gradual and sequential approach from a banking supervisory perspective with a current focus on understanding climate risk transmission channels, as well as methodologies for measuring and assessing these risks. the tfcr plans to complete these fundamental research initiatives by mid - 2021. building on this analytical work, the tfcr will then consider the extent to which climate - related financial risks are incorporated in the existing basel framework and identify effective supervisory practices to mitigate such risks. the tfcr does not currently have a view on potential prudential treatments or supervisory expectations related to the mitigation of climate - related financial risks. conclusions the financial sector has taken important steps toward incorporating the financial risks of climate change into risk management frameworks, strategic discussions, and oversight regimes, but i think it is fair to say that this work is still in its early days. we all have much to learn with many challenges ahead of us. my perspective reflects, in part, the observation that understanding the impact of climate change from a risk management perspective is both a complex problem and a complicated one. 4 it is complex in the sense of many interconnections and

jorgovanka tabakovi : stability of the banking sector in serbia preserved and additionally strengthened introductory speech by dr jorgovanka tabakovi, governor of the national bank of serbia, at the annual assembly of the association of serbian banks, belgrade, 18 june 2024. * * * ladies and gentlemen, dear marina, esteemed fellow bankers, it gives me great pleasure to welcome you to the annual session of the assembly of the association of serbian banks, a business association that has been contributing to the development of the banking sector and the modernisation of financial services in serbia for more than 100 years. through solid partnership and cooperation, the national bank of serbia and the association of serbian banks promote transparency in work and coordination of activities, all with a view to achieving one and the same goal – preserving the stability of the banking sector of serbia and strengthening its resilience to challenges. the stability of the financial system is a shield against economic disruptions and changes, as well as a vital link on the path to sustainable economic development. by strengthening the stability of the financial sector, we lay the groundwork for long - term economic growth and ensure a better standard for all our citizens. delivering financial stability is a continuous process. we build trust, as the key ingredient in this context, through strategic risk management and a proactive regulatory approach. for a number of years already, the national bank of serbia has succeeded in ensuring price and financial stability by taking well - timed and appropriate decisions. we used the period of low and stable inflation to strengthen financial stability by bringing all parameters to the levels that are well above the regulatory minimums. the stability of the financial system was also confirmed during the last four years marked by an unprecedented multidimensional crisis, which shows the importance of a coordinated monetary and macroprudential policy. thanks to the flexibility of our monetary framework, we tightened monetary conditions gradually and measuredly, without endangering the stability of the financial system at any point. we managed to return inflation on a downward path and in may, in accordance with our projections, it returned within the target band, to 4. 5 %. with this in mind, the executive board assessed that the conditions have been created for the start of monetary policy easing through the reduction of the key policy rate, which was trimmed after almost a year by 25 bp, to the level of 6. 25 %. we expect that inflation will continue to slow until the end of the year and that it will