the adoption of crypto - assets and related technologies could improve the speed and efficiency of financial intermediaries and infrastructures but, on the other hand, it can worsen their carbon footprint because of the energy consumption of some of the underlying processes ( such as mining ). the answer, however, is not to block the development of these new technologies but, conversely, to trust even more scientists and innovators and support them in improving the environmental and sustainability profiles of their solutions. in order to support the development of efficient technological solutions combining innovation in finance and sustainability, new policy instruments such as innovation facilitators could play an important role. in fact, innovation hubs may allow the identification of use cases where innovative technologies can help to channel investments into sustainable objectives and to assist the transition to a greener economy. innovation facilitators also help supervisors and regulators in getting to know innovation from up - close and may ease the design of rules that provide the right incentives for the development and diffusion of “ climate - friendly ” technologies. 1 / 2 bis central bankers'speeches in this respect, it is worth saying that, at bank of italy – in addition to our “ fintech channel ” ( a web window through which operators can communicate with the central bank on any financial innovation issue ) – we have recently launched in milan a new innovation facilitator ( called milano hub ) aimed at fostering collaboration and knowledge sharing between public sector authorities and different stakeholders ( market operators, academics, etc. ) and facilitating, among others, the development and spread of safe and sustainable fintech solutions. that said, i am convinced that this g20 2021 techsprint, the projects and the technological solutions it will attract, will help in making this year a turning point in the transition towards a greener and more sustainable finance. i expect a successful global hackathon that will attract a wide variety of participants from every country of the planet. since in italy this year we are celebrating the 700th anniversary of dante, let me say that i hope that this competition will attract modern ulysses that, as dante recalls in the 26th canto of the inferno, are craving for “ worth and knowledge ” and are eager to discover new lands. at this moment of our history, we need more than ever that the brightest and most ambitious minds will set to work on the challenges that our society and institutions are facing. it is a great pleasure for me to wish you a fair competition. might all of

supervisors must remain vigilant. implementing and updating international standards is crucial to adapting to new challenges. after all, for supervisors there are always'interesting times'ahead. 1 i wish to thank francesco cannata and fabio recine for their very valuable input. 2 the role of internal models has been fundamentally revised. for certain risks, such as the credit valuation adjustment and operational risks, rather than questing for perfection, the bcbs simply accepted the idea that models cannot provide meaningful estimates. for other risks, such as credit risk, the new standards constrain the possibility to achieve capital optimisation by imposing input floors as safeguards against overoptimistic assumptions ; moreover, the advanced modelling approach can no longer be used for certain portfolios where data are too few and cannot yield statistically robust estimates. for market risk, the bcbs fundamentally revised the approach to modelling to make it more consistent with the complexities of modern trading activities. an output floor was set as a safeguard against model risk. 3 the weighted average cet1 ratios of the main global banks included in the basel monitoring exercise sample almost doubled, from around 7 to around 13 per cent, and the leverage ratio almost halved, from around 3. 5 to around 6. 5 per cent. the liquidity position improved strongly ; the lcr and nsfr were always well above their minima during the same period. see the'evaluation of the impact and efficacy of the basel iii reforms'report, published in december 2022. 4 let me also recall, as the issue of asset valuation is sometimes raised, that in the lcr high - quality liquid assets ( hqla ) are marked to market and subject to haircuts. 5 see bcbs,'newsletter on bank exposures to non - bank financial intermediaries ', december 2022. 5 / 5 bis - central bankers'speeches