in order to insulate banks from weak public finances, we need not only appropriate supervision but also suitable regulation ; regulation that will prevent banks from taking on excessive risk through state financing. such regulation should, for instance, include upper limits for lending to governments. it should also encompass appropriate capital backing for government bonds – which is another proposal made by stefan gerlach, incidentally. but the single supervisory mechanism and suitable regulation are just two elements of a banking union, and there are also other means available for severing the link between sovereigns and banks. the third tool in this respect is a european recovery and resolution mechanism for banks that has access to “ european ” funds. in this context, it is necessary that any such mechanism ensure that investors are first in line to bear the risk of their investment decision. taxpayers must be spared the burden of other people ’ s investment decisions – at the national level and even more so at the european level – for as long as there is no proper balance between liability and control. ladies and gentlemen, i have very briefly highlighted a few arguments in favour of european banking supervision – the “ why ”, so to speak. now, let us take a look at the “ how ”. 3. european banking supervision – the “ how ” the establishment of the single supervisory mechanism will see wide - ranging banking supervisory functions being transferred to the ecb. at least seventeen countries will give up their sovereignty in supervisory matters to the ecb ; the ecb will be directly responsible for the supervision of the most systemically important banks domestically and at european level. nevertheless, national legal systems and national market structures will still be of utmost importance for the welfare and success of these banks. given the multitude of different s gerlach, a schulz, g wolff ( 2010 ), banking and sovereign risk in the euro area. centre for economic policy research, discussion paper, no 7833. bis central bankers ’ speeches supervisory traditions, legal systems and people involved in supervision, the ssm will only be successful if appropriate governance and transparent cooperation and task - sharing are installed. one of the “ hot ” topics when swiftly organising a banking supervisory function for the ecb is future cooperation between the ecb and the national supervisors. organising a european banking supervisory mechanism in such a short time firstly means building upon existing structures. secondly, supervision will only be successful if the ecb is able to benefit from cross - border comparisons, taking into account the macroeconomic and microeconomic knowledge and

caroline abel : launch of nebula fintech limited remarks by ms caroline abel, governor of central bank of seychelles, at the launch of nebula fintech limited, beau vallon, 30 january 2024. * * * vice president, mr ahmed afif, president and chief executive officer of the trade and development bank mr. admassu tadesse, ministers, board members, management and staff of nebula fintech limited distinguished guests, ladies and gentlemen, good morning. i am pleased to have been afforded the opportunity to say a few words, on behalf of the central bank, as nebula fintech limited becomes the newest payment service provider to step into the seychelles financial services landscape. as we are all aware, technology is transforming the design and delivery of financial services and products across the globe, and seychelles cannot be left behind. with this, there is an increased need and interest for new players other than traditional banks to enter the market and offer payment solutions. against this backdrop, the central bank has been actively working towards modernising the financial sector over the last few years by introducing new systems and appropriate legislation that would encourage and facilitate the introduction of innovative financial products and services. the launch of airtel seychelles'mobile money transfer service in 2015, licensed by the central bank, marked the introduction of e - money in the local financial system. nebula fintech limited joining the dynamic and evolving financial services landscape almost a decade later, facilitated by the national payment system e - money regulations, enacted in 2022, symbolises further efforts and progress made to put in place the necessary frameworks to encourage more innovation in the local payments sphere. leveraging innovative financial solutions to support the country's digitalisation agenda is one of the strategic priorities outlined in the central bank's new strategic plan with the aim of maintaining financial stability. hence, pushing forward with the country's modernisation and fintech journey will undoubtedly see continuous collaboration between the relevant stakeholders to develop new initiatives that will spur innovations that respond to the needs and specificities of the various segments of the population. this is key to stimulating competition, increasing consumer choice and fostering access to convenient, affordable, reliable, efficient and safe financial products and services. the relevant regulatory and supervisory frameworks will also be developed and adjusted to ensure the mitigation of potential risks that these developments can bring. 1 / 2 bis - central bankers'speeches it is hoped that the e - money services and other payment solutions that will be offered by nebula fintech limited will