Finally, the weight of credit to construction and real estate promotion activities, which at one point accounted for 27% of total credit to the non-financial private sector, now stands at around 10%. Turning to solvency levels, Spanish banks increased their ordinary - or Tier 1 - capital. This rose from € billion in 2007 to € billion at present, entailing an increase of slightly more than 35%. In terms of total assets, the increase was of the order of 1 pp between these dates, to 5.8%. The increase in capital has meant a notable extension of absorption capacity for the losses that will emerge as a result of the growth of bad debts that the crisis will cause. Almost half this total amount of capital is in the form of buffers above the regulatory minimum level. These may be released, as I will explain later, as part of the prudential response to the crisis should it prove necessary. The amount involved - some € billion could cover a volume of losses equivalent to almost twice the current volume of doubtful loans in the system, i.e. approximately 8.2% of the total credit to the resident private sector. As I said, the risks to financial stability have been mitigated by the various economic policy measures adopted. In particular, these measures should provide for more benign developments in NPLs by directly supporting the financial position of households and firms and through macroeconomic stimulus.
Michelle Neal: Advances in digital currency experimentation Remarks by Ms Michelle Neal, Executive Vice President and Head of Markets of the Federal Reserve Bank of New York, at the Singapore FinTech Festival 2022, Singapore, 4 November 2022. ***  As prepared for delivery Good afternoon. It is a pleasure to be here with you at the Singapore Fintech Festival. It is exciting to be a part of this gathering of industry professionals, policy leaders, and investors to discuss key developments in the fintech industry. Digital innovation has the potential to benefit the financial system writ large by reducing transaction costs, increasing competition, and broadening access to a wider range of participants. However, harnessing the full potential of financial innovation and related technologies – especially regarding cross-border settlements and payments – will require collaboration across a range of international partners. In my remarks today I will discuss the landscape of digital assets and some of the ways that the Federal Reserve System is engaging in research and experimentation that support ongoing innovation. As always, the views I express today are my own, and do not necessarily reflect those of the Federal Reserve Bank of New York or the Federal Reserve System. Digital Assets and the Federal Reserve We are all experiencing the incredible pace of growth and change within the digital asset domain, which encompasses a range of opportunities and risks.