First, the increase of inflation and rise of interest rates to balance its impact, as well as the respective effects passed through in the economic and financial sector from this interaction, have been the remit in all recent meetings and forums with national and international partners and homologue. The structure of re-pricing credit portfolios, which are dominant in our banking system, has enabled banks to begin to transfer this effect to borrowers, while the relatively high share of non-interest bearing accounts on the liability side has provided for the increase of interest margins, at least temporary. But the increase of credit cost bears the risk of non-performing loans growing in the future, so far as borrowers' solvency has not proportionally increased with the price upsurge. The development of abilities to foresee and assess in an objective manner the solvency of the existing clients – without being inclined to fast and short-term profits, which may harm an already established long-term relationship - will be one of the main challenges in the next year. Second, requirements on capital (macro-prudential buffers and requirements on regulatory capital instruments and eligible liabilities) will continue to increase in  3/4  BIS - Central bankers' speeches  compliance with the regulatory provisions and the respective gradual application programme in 2023.
Cross-border payments  Page 5  are by their nature more complex than purely domestic ones. They involve more, and in some cases numerous, intermediaries, time zones, jurisdictions and regulations. In some instances, a cross-border payment can take several days and can cost up to 10 times more than a domestic payment. That is why enhancing cross-border payments was set as a priority in 2020 by the G20 and the UK has been playing a leading role in the comprehensive work programme led by the FSB[6] and which the CPMI and the BIS more broadly are closely involved in. One of the main frictions in the cross-border space is where the same transaction must be reviewed multiple times to ensure that the parties are not exposing themselves to illicit finance under different national regulations and sanctions lists. The current costs of AML/CFT compliance are significant[7]. Experience with complementary innovations such as digital IDs has already demonstrated the potential for cost savings[8]. There is also a significant time and resource benefit as sanctions alerts have typically been generated on a far greater number of transactions than actually are “true” hits. The mismatch between an alert and identification of a sanctioned transaction creates extra layers of review which extend transaction timelines and add cost – particularly where additional manual controls are needed. The G20/FSB Roadmap on cross-border payments is, amongst other things, focussed on how a more effective use of and greater standardisation of data could help to streamline AML/CFT and sanctions compliance.