. 5 the practice resulted in boards of directors reviewing and signing off on management ’ s compliance with every mra and mria. when we began that practice in 2013, our intention was to ensure that directors were in a position to hold management accountable in addressing risk management shortcomings. by 2014, we realized that the practice was “ almost surely distracting from strategic and risk - related analyses and oversight by boards ". 6 for perspective, a large banking firm may have one hundred or more mras outstanding at a given time, many of which are at a level of granularity that is more appropriate for management to remediate, with board oversight. the new proposed framework is designed to make boards more effective in holding management accountable in these efforts. while we have proposed that most mras and mrias be addressed in the first instance to management and not to the board, the board would continue to receive mras where board practices are at issue or where management has failed to promptly and adequately take the required actions. the board would also continue to receive copies of examination and inspection reports, including formal communications with the institution. in the parlance of the proposed guidance i just outlined, we fully expect the board to actively manage the information flow related to mras and to hold management accountable for remediating them. in doing so, a board may choose to track progress and closure of mras through an appropriate board committee, rather than getting into the granular detail on every individual mra. conclusion we need financial institutions that are strong enough to support economic growth by lending through the economic cycle. to achieve that goal, we need strong and effective boards of directors at firms of all sizes. a strong and effective board provides strategic leadership and oversight, which is much more challenging and important than checking off lists of assigned tasks. i look forward to our continuing dialogue on this subject today and in the months to come, and reviewing carefully the comments received on the proposal. 1 the views i express here are my own and not necessarily those of the board of governors of the federal reserve system. 2 jerome h. powell, “ relationship between regulation and economic growth, ” ( testimony before the committee on banking, housing, and urban affairs, u. s. senate, june 22, 2017 ). 3 see sr letter 04 – 18, “ bank holding company rating system, ” 69 fr 70444 ( december 6, 2004 ). 4 see www. federalreserve. gov / newsevents / press

- tiered system, which i have mentioned, have provided society with. to give an example, it is vital for cbdc to be designed in such a way that users'privacy would be preserved, showing respect for their lives as people. similarly, the sharing of roles between central bank money and private money as well as private firms'capacity for resource allocation and innovation should also be valued. last but not least, the digital features of cbdc carry the potential to create diverse values. how should we utilize cbdc to empower people and firms, and ultimately establish a new ecosystem, which would be brought about by cbdc adoption? exploring cbdc from such a perspective is equally important. closing remarks the main theme of this year's fin / sum is " building a bright future : fintech for happy growth. " underlying this is said to be the hope for and determination to build a better future by striking the right balance between ( 1 ) stable and sustainable economic growth and ( 2 ) people's happiness, while effectively utilizing novel technologies. the bank of japan has been proceeding with the pilot program for cbdc - my topic today - since 2023. we continue to engage in various efforts to envision the future of the overall payment system, including a panel discussion on the future landscape of wholesale payments scheduled to take place here tomorrow. for these efforts to serve as channels to " happy growth, " it is essential that we continue with our dialogue, as drawing on your experiences and wisdom is key to this bright future. we therefore kindly ask for your support as we pave the way forward. thank you for your attention. 3 / 3 bis - central bankers'speeches