On the other hand, it provides a better framework for risk sharing and mitigation. What is critical for effective development of IF that both regulatory and supervisory regime recognizes the risk profile of IF and provides adequate guidance on exposures, risk weights and capital to be assigned so that there is uniform application of these standards by industry.
(2020), Tiered CBDC and the ﬁnancial system, European Central Bank, Working Paper, No 2351; Bindseil, U. and F. Panetta (2020), CBDC remuneration in a world with low or negative nominal interest rates, VoxEU, 5 October 2020, https://voxeu.org/article/cbdc-remunerationworld-low-or-negative-nominal-interest-rates. 16. European Central Bank (2020), Report on a digital euro, 2 October 2020. 17.