bankers'speeches 1 lange, c. l. ( 1921 ), " lecture upon receipt of the nobel peace prize ", 13 december. 2 hendershott, t. et al. ( 2011 ), " does algorithmic trading improve liquidity? ", the journal of finance, vol. 66, issue 1, february. 3 see, for example, bindseil, u. and schaaf, j. ( 2022 ), " bitcoin's last stand ", the ecb blog, 30 november. 4 mckinsey ( 2024 ), " the state of ai in early 2024 : gen ai adoption spikes and starts to generate value ", 30 may. 5 microsoft ( 2024 ), " helping our customers through the crowdstrike outage ", 20 july. 6 see eiopa, " digital operational resilience act ( dora ) ". 7 esrb ( 2022 ), " warning of the european systemic risk board of 22 september 2022 on vulnerabilities in the union financial system ", 22 september. 8 leitner, g. et al. ( 2024 ), " the rise of artificial intelligence : benefits and risks for financial stability ", financial stability review, ecb, may. 9 national institute of standards and technology ( 2024 ), " nist releases first 3 finalized post - quantum encryption standards ", 13 august. 10 lagarde, c. ( 2024 ), " data sharing between the european supervisory authorities and the esrb ", letter to aurore lalucq, chair of the econ committee, 19 august. 11 labaree, l. w. ( ed. ) ( 1961 ), the papers of benjamin franklin, vol. 2, january 1, 1735, through december 31, 1744, yale university press, p. 12. 5 / 5 bis - central bankers'speeches

. 3 / 5 bis - central bankers'speeches our task now is to focus on how technological risks affect the interconnections and vulnerabilities across the entire financial system and ask ourselves how we may need to expand our toolkit. the answer is for macroprudential authorities to harness the power of new technologies, using the new opportunities they create as a force for good to mitigate the risks that technology may pose to the financial system. there is substantial potential on this front. ai can give us the capability to analyse vast amounts of supervisory and market data. and it can help us conduct more rigorous risk assessments to identify vulnerabilities faster and ensure timely prudential responses to new threats. we will need to consider a broader range of potentially disruptive scenarios and improve our capacity to model the financial stress that such scenarios can generate. the available data allow us to go a long way. but we need to go even further and remove obstacles to safe data sharing. in my capacity as chair of the esrb, i have recently called on european lawmakers to facilitate the removal of barriers to safe data sharing between the esrb and european supervisory authorities, a crucial step towards enabling us to use data to their full potential. 10 at the same time, we need to enhance our collaboration across institutions, sharing insights and expertise so that we can collectively tackle the challenges ahead. by embracing technology, the role of macroprudential policy will be to help microprudential supervision to stay ahead of the curve, ensuring financial institutions are not only compliant with today's rules but are also resilient to tomorrow's threats. conclusion let me conclude. as with tackling cyclical risks, macroprudential policy at the new frontier centres on being proactive rather than reactive. policymakers cannot afford to simply respond to crises as they emerge. we must continually attempt to anticipate them, harnessing the power of technology and data to build a financial system that is truly resilient. as benjamin franklin once wrote, " an ounce of prevention is worth a pound of cure ". 11 and franklin knew this first - hand. he is widely credited for developing and popularising the use of the lightning rod, which would go on to prevent many disasters. looking at this conference's agenda, i am confident that the discussions will spark fresh perspectives and innovative ideas as we explore the new frontiers of macroprudential policy. thank you. 4 / 5 bis - central