u. s. regional banks, several factors contributed : unsustainable business models, poor management, too rapid growth, overreliance on uninsured deposits, and concentration in loans and funding. credit suisse's crisis had more complex causes, including large losses from the archegos and greensill cases, governance weaknesses, and repeated strategic changes that eroded market confidence. despite the varying causes, the commonalities reveal potential areas for improving the regulatory framework. in all cases, a rapid loss of client and market confidence occurred. all the banks involved faced substantial liquidity outflows, amplified by social media and facilitated by digital banking. one key area to think about is therefore liquidity regulation. let me start with a very basic observation. why are banks subject to regulation and supervision? the banking business has two key features : leverage and maturity / liquidity transformation. both are necessary for banks to perform their function ; both, however, entail a degree of fragility and the risk of spillovers and contagion, with potentially destructive effects that go far beyond the shareholders of individual institutions. bank regulation is there to limit the system's exposure to such risks, without hampering its fundamental function. 2 / 5 bis - central bankers'speeches this much, i think, is obvious. however, the fact is that, for some reason, international regulatory standards have long concentrated on the first cause of fragility, leverage, by requiring e. g. minimum capital ratios ; such requirements have been at the centre of global standards since the start, with the first basel accord, and have gradually been strengthened over time. the second cause of fragility, maturity transformation ( and, relatedly, liquidity ), were not covered at all in basel i or ii, and only started to appear in basel iii in the form of liquidity standards and pillar - 2 provisions for the interest rate risk in the banking book ( irrbb ). this is strange in a way : it is, after all, common wisdom that bank crises are, more often than not, due to liquidity problems. basel iii thus made progress ; but the compromises i mentioned were, in my view, not fully satisfactory in this area. specifically, there appears to be room for reconsidering the net stable funding ratio ( nsfr ). the current nsfr's one - year horizon means that it cannot fully capture a bank's structural exposure to maturity mis

– by comparison with instant payments – 30 times more slowly, and is about 10, 000 times more expensive. the inefficient processing makes transactions costly not just from a financial perspective, but also in terms of the environmental impact. bitcoin in particular has a large carbon footprint due to the electricity consumption required for its creation and transfer. in addition, because virtual currencies do not have a trusted issuer behind them, they may become worthless at any time. it is not surprising, then, that virtual currencies are not widely accepted as a means of payment. conclusion the future of payments is instant and most countries in the euro area are moving with the times. this is a natural development, following the rise of real - time services in other industries. the industry ( with the support of the eurosystem ) has stepped up to the challenge and developed a scheme and an infrastructure that enable such services to become the new normal for euro payments. now it is time to go one step further and provide efficient and innovative end - user solutions that allow consumers and businesses across europe to make instant payments in any payment situation, especially at the point of sale, where the majority of retail payments are made. i encourage new and existing service providers to take the opportunity to develop pan - european point - of - sale solutions based on instant payments. these solutions should be efficient, userfriendly and secure. as you are all aware, high security standards are essential to retain public trust. i therefore reiterate my call to payment service providers to adhere to the psd2 regulatory technical standards on strong customer authentication and common and secure communication as soon as possible, even before they are legally required to do so. by providing services that are safe, as well as fast and convenient, the payments industry will succeed in meeting the needs of a digitalised society. 3 / 3 bis central bankers'speeches