in those regions where many people still do not have access to face - to - face financial services. this has been made possible by the spread of smartphones, which function as a platform for providing financial services, skipping the stage of face - to - face financial services. this leapfrogging has the advantage of providing immediate access to the fruits of financial innovation without the switching costs of shifting from existing information technology systems. moreover, it also brings substantial benefits in the context of financial inclusion. notably, the evolution of digital technologies is not limited to traditional banks ; non - bank financial intermediaries ( nbfis ) increasingly leverage digital platforms to offer innovative services, such as cross - border funds transfers. on the other hand, it should be noted that the digitalization of finance could pose new risks to the stability of the financial system. it is becoming ever more important to ensure operational resilience, for example, by managing cyber and third - party risks, and to introduce anti - money laundering and combating the financing of terrorism ( aml / cft ) measures. crypto assets, tokenization, artificial intelligence ( ai ), and other new technologies may bring opportunities, but they could also pose risks to the financial system. a critical challenge for financial authorities lies in harnessing the advantages of the digitalization of finance while effectively managing risks to ensure the stability of the financial system. as financial services and providers continue to diversify, adopting the 3 / 5 bis - central bankers'speeches principle " same activity, same risk, same regulation " has become increasingly important. however, a practical challenge persists in determining which activities and risks should be classified as " the same " under this principle. given the significant progress in digitalization witnessed in the apac region, it is imperative for financial authorities to collaborate and engage in comprehensive discussions on this topic. c. growing need to address climate change on the financial front the third change is the growing need to address climate change on the financial front. the apac region accounts for a large share of the world's carbon dioxide emissions, and the region is susceptible to the adverse effects of climate change, with massive flood damage increasing in recent years, for example. this is why financial authorities in this region are particularly interested in addressing climate change. climate change represents a global challenge necessitating active participation of diverse entities acrosssociety and the economy. on the financial front, efforts are being pursued based on two overarching perspectives. the first

is initiatives by financial institutions to address climate - related financial risks. proper assessment and management of physical and transition risks through scenario analysis are becoming a more important challenge for financial institutions. it is necessary for them to understand both climate - related risks and opportunities appropriately and to conduct their business and risk management on that basis. the second perspective is financial intermediation and capital market development when addressing climate change. new investment and finance for the transition are essential in pushing ahead with decarbonization realistically without compromising social welfare. there is therefore likely to be substantial demand for funds in the corporate sector. to meet such demand efficiently, financial institutions and investors should be able to assess appropriately the risks and returns of their investments, taking the effects of measures to address climate change into account. as a basis for this, it is very important to work on information disclosure. i hope that discussions at this meeting will contribute to improving the effectiveness of financial practices in addressing climate change. concluding remarks in conclusion, i am confident that this meeting will facilitate vibrant discussions and valuable insights, allowing us to deepen our understanding of the challenges confronting the apac financial system. reflecting on history, we recognize the numerous financial crisis episodes that have occurred. the current stability of the apac financial system results from continuous efforts by relevant stakeholders, drawing from the lessons and experiences of past crises. now, our pivotal mission is to pass on these invaluable lessons and experiences from the present to future generations. i am certain that the apac financial system will remain a cornerstone of the region's economy, characterized by its significant growth potential. the bank of japan remains 4 / 5 bis - central bankers'speeches committed to strengthening coordination and collaboration with all stakeholders to ensure the stability and resilience of the financial system for the future. thank you for your attention. 5 / 5 bis - central bankers'speeches