Fourth, forward-looking banking supervision can urge banks to ensure that they have an overview of the climate-related risks on their balance sheets, and that they do so on a continual basis and with reference to stress scenarios. This is the approach that European banking supervision is taking. c. Payments I have talked about the major challenges facing Europe.
But there are also areas which are less prominent and not quite so fundamental, but which are still important in our interconnected world. Payments are one such example. Safe, reliable and efficient payment systems are a vital part of a wellfunctioning and integrated economy. Technological progress and changing payment habits have fundamentally altered the payment system and thrown up new challenges.