. g. its longterm profitability or also its risk management keeping pace with expanding business? does it suffice to confront bank managers with those issues at the annual regulatory meeting? are targeted on - site inspections the best way forward? existing supervisory standards do set the right framework, but supervisors might need clearer guidance in order to exert the necessary amount of pressure on the supervised entity. 3 where do we stand? so where do we stand today? although sustainable finance is no longer an entirely new topic, it is still difficult to grasp. at the 1 / 4 bis central bankers'speeches same time, we are clearly moving beyond great political speeches. to supervisors, tackling sustainable finance means tackling environmental, social and governance ( “ esg ” ) risks ; here, we have so far mostly but not exclusively focused on climaterelated risks. much of the pioneering work at the international level is being done by the members of the network for greening the financial system ( ngfs ). compared to about one and a half years ago, when the newly founded ngfs entered into its productive phase, we have certainly made good progress. we have built a broad consensus that esg risks, in particular climate - related risks, are financial risks. and we have started analysing regulatory implications and setting supervisory expectations. but we are still in the process of developing an understanding of the channels through which these risks could materialise, from both the micro - and macroprudential perspectives. unlike other risk factors, the way climate change - related developments including policy measures will impact the macro economy is not well understood. our current activities could be considered as “ sensitivity analyses ” exploring potential vulnerabilities of the financial system under different assumptions. of course, the objective of the global efforts on the part of central banks and supervisors is to add stress tests or scenario analyses to our toolbox. therefore, the crr ii and crd v contain not only new disclosure provisions but also mandates for the european banking authority ( eba ) to examine the integration of esg risks into pillar 1 and pillar 2. work on pillar 2 has already started and is being conducted jointly by the eba and national competent authorities ( ncas ) in the eba sustainable finance network. here in germany, a guidance note on the treatment of sustainability risks by financial institutions drafted by bafin is currently up for public consultation. other countries have already published supervisory statements. but : if you were to randomly pick a local

be at stake nowadays, with the conjunction of three main trends that have a disruptive effect on the market : new solutions, new behaviors and players, new regulations. first, innovative payment solutions based on sepa schemes are very likely to emerge. one prime example of this possible groundswell is the preparation, under the impulse of the euro retail payments board ( erpb ), of a pan - european instant payments scheme by the european payments council ( epc ), based on the existing sepa credit transfer scheme. this new scheme, which should be finalized by the end of 2016 and operational before the end of 2017, will serve the development of further innovative products, especially via smart devices, for proximity and mobile payments. this is a relevant example of how the harmonisation and standardization work done in the context of the so - called “ sepa 1. 0. ” for legacy payment instruments ( direct debit and credit transfer ) may serve as a basis for market players to develop new innovative real time and paperless payment solutions, what i would call “ sepa 2. 0. ”. secondly, we observe the emergence of new payment behaviors and new market players, in relation with further technological innovations. this is mostly led by the rising prominence of e - commerce, which has fundamentally changed payment usages in the last few years. the bis central bankers ’ speeches search for a payment instrument adapted to these evolutions has first led to a wider usage of payment cards, beyond proximity transactions. these card - not - present payments over the internet now account in france for nearly 7. 5 % of all card based - transactions in volume, and for 11. 6 % of the overall value of these transactions. nevertheless, new technologies are gaining traction, by capitalizing on devices such as smartphones and tablets and allowing to get rid of “ plastic ” payment cards through virtual wallets. these general changes, which are already affecting traditional actors, are reinforced by the introduction of new players, either the much talked about “ gafa ” ( google, apple, facebook and amazon ) or the smaller actors concentrating on niche payment services, that capitalize on these new technologies to enter the payment cards market. to be fair, this move “ out of plastic ” is a bit slower than forecasted some years ago : but it shall probably accelerate. lastly, in europe, the third trend that is also deeply influencing the payment cards market is the current regulatory renovation that is taking place, notably through the implementation of the