1 00:00:47,200 --> 00:00:50,733 Hello, I’m welcome to this new 2 00:00:50,733 --> 00:00:51,400 Hello, I’m welcome to this new session of Arugula annual 3 00:00:51,400 --> 00:00:53,766 session of Arugula annual meeting 2020. Uh I’m Nicholas 4 00:00:53,766 --> 00:00:56,133 meeting 2020. Uh I’m Nicholas von in Google and I’m 5 00:00:56,133 --> 00:00:57,934 von in Google and I’m absolutely delighted to open 6 00:00:57,934 --> 00:00:59,267 absolutely delighted to open the spinal with our five 7 00:00:59,267 --> 00:01:03,066 the spinal with our five panelists um uh Alexandra 8 00:01:03,066 --> 00:01:08,899 panelists um uh Alexandra Demitri boudoir and uh I uh 9 00:01:08,899 --> 00:01:10,867 Demitri boudoir and uh I uh they will speak in the order I 10 00:01:10,867 --> 00:01:12,367 they will speak in the order I will ask to handle this. I’m 11 00:01:12,367 --> 00:01:13,801 will ask to handle this. I’m not present a panelist because 12 00:01:13,801 --> 00:01:15,266 not present a panelist because there I will assume they 13 00:01:15,266 --> 00:01:17,300 there I will assume they well-known known to everybody 14 00:01:17,300 --> 00:01:19,933 well-known known to everybody uh, of course. They’re 15 00:01:19,933 --> 00:01:21,899 uh, of course. They’re extremely knowledgeable in 16 00:01:21,899 --> 00:01:22,533 extremely knowledgeable in their respective fields and 17 00:01:22,533 --> 00:01:23,967 their respective fields and we’re extremely grateful for 18 00:01:23,967 --> 00:01:25,767 we’re extremely grateful for their parts in this session of 19 00:01:25,767 --> 00:01:27,934 their parts in this session of the brutal meetings. Uh I will 20 00:01:27,934 --> 00:01:29,967 the brutal meetings. Uh I will panelist to make very brief 21 00:01:29,967 --> 00:01:31,233 panelist to make very brief introduction so that we can 22 00:01:31,233 --> 00:01:33,633 introduction so that we can keep the conversation flowing 23 00:01:33,633 --> 00:01:35,299 keep the conversation flowing uh and we hope to have a lot of 24 00:01:35,299 --> 00:01:38,000 uh and we hope to have a lot of interaction uh in terms of uh 25 00:01:38,000 --> 00:01:39,833 interaction uh in terms of uh given the vastness of the 26 00:01:39,833 --> 00:01:41,667 given the vastness of the topics we want to cover so uh 27 00:01:41,667 --> 00:01:43,401 topics we want to cover so uh I’m not going to hold it 28 00:01:43,401 --> 00:01:44,733 I’m not going to hold it further and ask you Alexandra 29 00:01:44,733 --> 00:01:47,034 further and ask you Alexandra uh Alexandra Demitri uh from 30 00:01:47,034 --> 00:01:51,367 uh Alexandra Demitri uh from uh. At to uh to give us your 31 00:01:51,367 --> 00:01:53,033 uh. At to uh to give us your view on uh maybe you know um 32 00:01:53,033 --> 00:01:54,667 view on uh maybe you know um how you see the situation now 33 00:01:54,667 --> 00:01:55,867 how you see the situation now in terms of the banking system 34 00:01:55,867 --> 00:01:58,234 in terms of the banking system and in terms of uh you know 35 00:01:58,234 --> 00:01:59,967 and in terms of uh you know resilience uh given to pandemic 36 00:01:59,967 --> 00:02:03,197 resilience uh given to pandemic shock. 37 00:02:05,496 --> 00:02:07,864 Hello Nikola and uh thank you 38 00:02:07,864 --> 00:02:11,463 Hello Nikola and uh thank you very much for the invitation to 39 00:02:11,463 --> 00:02:15,731 very much for the invitation to uh this today so um how we’re 40 00:02:15,731 --> 00:02:17,864 uh this today so um how we’re seeing the situation today to 41 00:02:17,864 --> 00:02:19,464 seeing the situation today to your question in terms of the 42 00:02:19,464 --> 00:02:22,731 your question in terms of the the banking system um I think 43 00:02:22,731 --> 00:02:25,531 the banking system um I think over overall uh we think that 44 00:02:25,531 --> 00:02:29,364 over overall uh we think that uh banks have a sufficiently 45 00:02:29,364 --> 00:02:31,497 uh banks have a sufficiently strong regulatory capital 46 00:02:31,497 --> 00:02:34,664 strong regulatory capital buffer to absorb uh um the the 47 00:02:34,664 --> 00:02:36,731 buffer to absorb uh um the the large shock uh related to the 48 00:02:36,731 --> 00:02:40,130 large shock uh related to the AB. Obviously a big difference 49 00:02:40,130 --> 00:02:41,664 AB. Obviously a big difference compared to the great financial 50 00:02:41,664 --> 00:02:44,964 compared to the great financial crisis is that banks are 51 00:02:44,964 --> 00:02:46,863 crisis is that banks are entering this crisis with a lot 52 00:02:46,863 --> 00:02:49,531 entering this crisis with a lot stronger uh capital ratios and 53 00:02:49,531 --> 00:02:53,064 stronger uh capital ratios and liquidity they’ve actually been 54 00:02:53,064 --> 00:02:55,830 liquidity they’ve actually been uh part of the solution here in 55 00:02:55,830 --> 00:02:57,397 uh part of the solution here in helping making sure uh that 56 00:02:57,397 --> 00:03:00,097 helping making sure uh that there is continuity in the 57 00:03:00,097 --> 00:03:01,530 there is continuity in the transmission of credit to the 58 00:03:01,530 --> 00:03:03,997 transmission of credit to the real economy uh during the the 59 00:03:03,997 --> 00:03:08,131 real economy uh during the the pick of the week so overall. Uh 60 00:03:08,131 --> 00:03:10,463 pick of the week so overall. Uh in aggregate, uh we think that 61 00:03:10,463 --> 00:03:13,531 in aggregate, uh we think that this uh provide some comfort um 62 00:03:13,531 --> 00:03:15,930 this uh provide some comfort um and if you look at the report 63 00:03:15,930 --> 00:03:16,797 and if you look at the report for the first half of the 64 00:03:16,797 --> 00:03:18,996 for the first half of the month, we see that in the 65 00:03:18,996 --> 00:03:21,564 month, we see that in the courts, one capital ratios are 66 00:03:21,564 --> 00:03:23,963 courts, one capital ratios are have stayed. We’ll have uh 67 00:03:23,963 --> 00:03:26,530 have stayed. We’ll have uh being slightly improved and 68 00:03:26,530 --> 00:03:27,897 being slightly improved and health uh filling but overall 69 00:03:27,897 --> 00:03:30,897 health uh filling but overall obviously the story isn’t over 70 00:03:30,897 --> 00:03:34,631 obviously the story isn’t over yet and uh I think they are the 71 00:03:34,631 --> 00:03:35,197 yet and uh I think they are the important point is that they 72 00:03:35,197 --> 00:03:37,597 important point is that they are uh a lot of uncertainties 73 00:03:37,597 --> 00:03:38,964 are uh a lot of uncertainties that remain both on how the the 74 00:03:38,964 --> 00:03:40,864 that remain both on how the the virus um might unfold if you 75 00:03:40,864 --> 00:03:43,864 virus um might unfold if you might have multiple ways. but. 76 00:03:43,864 --> 00:03:46,597 might have multiple ways. but. One particular point um of of 77 00:03:46,597 --> 00:03:47,931 One particular point um of of concern that we have and that 78 00:03:47,931 --> 00:03:49,564 concern that we have and that we’re going to look at very 79 00:03:49,564 --> 00:03:52,430 we’re going to look at very carefully is the implications 80 00:03:52,430 --> 00:03:56,030 carefully is the implications of uh the withdrawal of the 81 00:03:56,030 --> 00:03:58,496 of uh the withdrawal of the extraordinary um support and 82 00:03:58,496 --> 00:04:00,430 extraordinary um support and over the second half of the 83 00:04:00,430 --> 00:04:02,531 over the second half of the year well into next year and 84 00:04:02,531 --> 00:04:05,364 year well into next year and how that might translate into 85 00:04:05,364 --> 00:04:07,097 how that might translate into increase in credit losses and 86 00:04:07,097 --> 00:04:08,564 increase in credit losses and what we’re seeing what we’re 87 00:04:08,564 --> 00:04:10,664 what we’re seeing what we’re expecting in our study we 88 00:04:10,664 --> 00:04:11,864 expecting in our study we published last summer is uh 89 00:04:11,864 --> 00:04:15,464 published last summer is uh credit loss. Increased to over 90 00:04:15,464 --> 00:04:16,964 credit loss. Increased to over 200000000000 in in uh for 91 00:04:16,964 --> 00:04:18,564 200000000000 in in uh for western European banks for 92 00:04:18,564 --> 00:04:21,930 western European banks for twenty 2021 uh from fifty-nine 93 00:04:21,930 --> 00:04:24,996 twenty 2021 uh from fifty-nine in 2019 so today we’ve had very 94 00:04:24,996 --> 00:04:28,864 in 2019 so today we’ve had very few downgrades of B um, but on 95 00:04:28,864 --> 00:04:29,896 few downgrades of B um, but on the other hand, we have more 96 00:04:29,896 --> 00:04:33,097 the other hand, we have more than 40% of bunks here in 97 00:04:33,097 --> 00:04:35,497 than 40% of bunks here in Europe and the negative outlook 98 00:04:35,497 --> 00:04:36,930 Europe and the negative outlook really flagging all of of 99 00:04:36,930 --> 00:04:38,464 really flagging all of of uncertainties that um these 100 00:04:38,464 --> 00:04:42,563 uncertainties that um these uncertainties that lie ahead. 101 00:04:42,563 --> 00:04:43,296 uncertainties that lie ahead. Thank you and that’s uh that’s 102 00:04:43,296 --> 00:04:45,097 Thank you and that’s uh that’s a great starting point. I guess 103 00:04:45,097 --> 00:04:49,130 a great starting point. I guess so uh I I’m turning to care uh 104 00:04:49,130 --> 00:04:50,197 so uh I I’m turning to care uh uh governor of the National 105 00:04:50,197 --> 00:04:52,797 uh governor of the National Bank of Belgium, of course uh 106 00:04:52,797 --> 00:04:54,530 Bank of Belgium, of course uh and uh with uh maybe a question 107 00:04:54,530 --> 00:04:55,930 and uh with uh maybe a question about the banking union right 108 00:04:55,930 --> 00:04:57,197 about the banking union right because this is the first big 109 00:04:57,197 --> 00:05:00,930 because this is the first big test of the banking union uh in 110 00:05:00,930 --> 00:05:03,030 test of the banking union uh in action um the supervisor a 111 00:05:03,030 --> 00:05:04,163 action um the supervisor a framework was put together in 112 00:05:04,163 --> 00:05:07,130 framework was put together in 2014 the framework in sixteen. 113 00:05:07,130 --> 00:05:08,830 2014 the framework in sixteen. So how do you see that at this 114 00:05:08,830 --> 00:05:10,997 So how do you see that at this point and uh it’s the banking 115 00:05:10,997 --> 00:05:13,097 point and uh it’s the banking union fit for purpose in such a 116 00:05:13,097 --> 00:05:14,697 union fit for purpose in such a stressful environment? Yeah. 117 00:05:14,697 --> 00:05:19,063 stressful environment? Yeah. Yeah. You. Can you hear me or 118 00:05:19,063 --> 00:05:20,197 Yeah. You. Can you hear me or see me? I don’t see myself on 119 00:05:20,197 --> 00:05:22,597 see me? I don’t see myself on the on the screen? Okay um 120 00:05:22,597 --> 00:05:23,896 the on the screen? Okay um well, I’m I’m basically in 121 00:05:23,896 --> 00:05:25,164 well, I’m I’m basically in agreement with what Alexandra 122 00:05:25,164 --> 00:05:27,164 agreement with what Alexandra is said. I think it’s also very 123 00:05:27,164 --> 00:05:28,097 is said. I think it’s also very important that we don’t look at 124 00:05:28,097 --> 00:05:30,431 important that we don’t look at the banking union isolation of 125 00:05:30,431 --> 00:05:31,197 the banking union isolation of other policies that have been 126 00:05:31,197 --> 00:05:33,564 other policies that have been conducted at the European 127 00:05:33,564 --> 00:05:35,930 conducted at the European International European National 128 00:05:35,930 --> 00:05:37,197 International European National level. Uh we are I think this 129 00:05:37,197 --> 00:05:38,964 level. Uh we are I think this is a well-managed crisis uh and 130 00:05:38,964 --> 00:05:42,464 is a well-managed crisis uh and we are doing all we can to uh 131 00:05:42,464 --> 00:05:44,197 we are doing all we can to uh to absorb the shock and there 132 00:05:44,197 --> 00:05:45,464 to absorb the shock and there are many interventions that 133 00:05:45,464 --> 00:05:46,731 are many interventions that many levels. I’m not going to 134 00:05:46,731 --> 00:05:47,964 many levels. I’m not going to repeat them but uh including 135 00:05:47,964 --> 00:05:49,363 repeat them but uh including warranties at the national 136 00:05:49,363 --> 00:05:51,997 warranties at the national level that have an impact on. 137 00:05:51,997 --> 00:05:54,330 level that have an impact on. Banks are going to be to be 138 00:05:54,330 --> 00:05:56,097 Banks are going to be to be impacted, so this is this is 139 00:05:56,097 --> 00:05:57,597 impacted, so this is this is early days in the crisis. I 140 00:05:57,597 --> 00:06:00,297 early days in the crisis. I would say so far so good uh the 141 00:06:00,297 --> 00:06:02,431 would say so far so good uh the reaction has been I guess the 142 00:06:02,431 --> 00:06:05,564 reaction has been I guess the correct one uh including it um 143 00:06:05,564 --> 00:06:06,898 correct one uh including it um mantra policy level. Now, Of 144 00:06:06,898 --> 00:06:07,896 mantra policy level. Now, Of course, we had the usual 145 00:06:07,896 --> 00:06:09,431 course, we had the usual suspects before the crisis is 146 00:06:09,431 --> 00:06:10,496 suspects before the crisis is they have not disappeared. I 147 00:06:10,496 --> 00:06:12,130 they have not disappeared. I tend to believe that this is 148 00:06:12,130 --> 00:06:13,597 tend to believe that this is not such a big issue with the 149 00:06:13,597 --> 00:06:16,163 not such a big issue with the person of the deposits. I think 150 00:06:16,163 --> 00:06:17,330 person of the deposits. I think when you get to this, you’ve 151 00:06:17,330 --> 00:06:20,864 when you get to this, you’ve already lost the war um but um 152 00:06:20,864 --> 00:06:23,031 already lost the war um but um my concern would. On the front 153 00:06:23,031 --> 00:06:24,597 my concern would. On the front of a resolution, which has not 154 00:06:24,597 --> 00:06:27,164 of a resolution, which has not been tested, I never thought 155 00:06:27,164 --> 00:06:29,398 been tested, I never thought that going for in a in a 156 00:06:29,398 --> 00:06:31,496 that going for in a in a systemic crisis was was a good 157 00:06:31,496 --> 00:06:33,931 systemic crisis was was a good idea. Uh we are in principle in 158 00:06:33,931 --> 00:06:35,464 idea. Uh we are in principle in the regime and in practice we 159 00:06:35,464 --> 00:06:38,264 the regime and in practice we do bailouts uh so let’s see uh 160 00:06:38,264 --> 00:06:39,497 do bailouts uh so let’s see uh but there’s Alexandra said. uh 161 00:06:39,497 --> 00:06:41,430 but there’s Alexandra said. uh this is these are still early 162 00:06:41,430 --> 00:06:43,397 this is these are still early days and of course we are going 163 00:06:43,397 --> 00:06:46,930 days and of course we are going to uh be uh you know in the 164 00:06:46,930 --> 00:06:48,430 to uh be uh you know in the coming months and years with a 165 00:06:48,430 --> 00:06:50,263 coming months and years with a number of uh unsustainable long 166 00:06:50,263 --> 00:06:51,397 number of uh unsustainable long term, so we are going to have 167 00:06:51,397 --> 00:06:52,930 term, so we are going to have public deficits that probably 168 00:06:52,930 --> 00:06:55,397 public deficits that probably would not be sustainable. 169 00:06:55,397 --> 00:06:57,797 would not be sustainable. Police were very negative rates 170 00:06:57,797 --> 00:07:00,464 Police were very negative rates uh how long can that last so is 171 00:07:00,464 --> 00:07:03,531 uh how long can that last so is not going to be easy, but but 172 00:07:03,531 --> 00:07:04,930 not going to be easy, but but again, I think the crisis has 173 00:07:04,930 --> 00:07:06,097 again, I think the crisis has been so far well managed and we 174 00:07:06,097 --> 00:07:07,697 been so far well managed and we have time. it’s not like we 175 00:07:07,697 --> 00:07:09,064 have time. it’s not like we have to solve all these issues 176 00:07:09,064 --> 00:07:11,830 have to solve all these issues within the next 6 months or 177 00:07:11,830 --> 00:07:15,330 within the next 6 months or even 2 years. 178 00:07:15,530 --> 00:07:17,530 You’re a support person on 179 00:07:17,530 --> 00:07:18,964 You’re a support person on banking and many other things 180 00:07:18,964 --> 00:07:22,130 banking and many other things that uh for financial services 181 00:07:22,130 --> 00:07:25,664 that uh for financial services that the European Commission um 182 00:07:25,664 --> 00:07:26,864 that the European Commission um and uh in the European 183 00:07:26,864 --> 00:07:28,231 and uh in the European Commission of course, has to a 184 00:07:28,231 --> 00:07:29,998 Commission of course, has to a lot of things, but also the 185 00:07:29,998 --> 00:07:31,431 lot of things, but also the logistics that agenda in terms 186 00:07:31,431 --> 00:07:33,730 logistics that agenda in terms of legislative priority. Can 187 00:07:33,730 --> 00:07:34,864 of legislative priority. Can you give us to start the 188 00:07:34,864 --> 00:07:37,564 you give us to start the discussion a little bit of 189 00:07:37,564 --> 00:07:39,530 discussion a little bit of flavor of a house in nineteen 190 00:07:39,530 --> 00:07:42,030 flavor of a house in nineteen has changed your sinking in 191 00:07:42,030 --> 00:07:43,431 has changed your sinking in priorities? Yes, uh thank. 192 00:07:43,431 --> 00:07:45,164 priorities? Yes, uh thank. Thank you, Nicola, I think when 193 00:07:45,164 --> 00:07:47,130 Thank you, Nicola, I think when the when the crisis uh broke 194 00:07:47,130 --> 00:07:50,096 the when the crisis uh broke out uh the the priority was to 195 00:07:50,096 --> 00:07:52,497 out uh the the priority was to look at the regulatory 196 00:07:52,497 --> 00:07:54,896 look at the regulatory framework to see if we could 197 00:07:54,896 --> 00:07:57,064 framework to see if we could identify uh adaptations 198 00:07:57,064 --> 00:07:59,398 identify uh adaptations alleviation that could could 199 00:07:59,398 --> 00:08:01,964 alleviation that could could help uh the financial sector to 200 00:08:01,964 --> 00:08:04,464 help uh the financial sector to continue providing funding to 201 00:08:04,464 --> 00:08:06,830 continue providing funding to uh to the economy uh and that’s 202 00:08:06,830 --> 00:08:08,497 uh to the economy uh and that’s why we came up with amendments 203 00:08:08,497 --> 00:08:10,830 why we came up with amendments to the capital requirements 204 00:08:10,830 --> 00:08:11,431 to the capital requirements regulation to give some 205 00:08:11,431 --> 00:08:13,563 regulation to give some breathing space to uh to uh to 206 00:08:13,563 --> 00:08:18,197 breathing space to uh to uh to the banks. This was a swift. 207 00:08:46,664 --> 00:08:49,064 The amendments to uh to make it 208 00:08:49,064 --> 00:08:54,597 The amendments to uh to make it uh also uh in order to um uh uh 209 00:08:54,597 --> 00:08:55,896 uh also uh in order to um uh uh facilitate uh a life of uh 210 00:08:55,896 --> 00:08:57,730 facilitate uh a life of uh participants on the on the 211 00:08:57,730 --> 00:08:58,863 participants on the on the market. It’s not to deal with 212 00:08:58,863 --> 00:09:01,297 market. It’s not to deal with alleviation in the field of 213 00:09:01,297 --> 00:09:02,597 alleviation in the field of disclosure requirements and all 214 00:09:02,597 --> 00:09:03,997 disclosure requirements and all this is still being discussed 215 00:09:03,997 --> 00:09:05,197 this is still being discussed in in counseling and 216 00:09:05,197 --> 00:09:07,030 in in counseling and empowerment, But of course, 217 00:09:07,030 --> 00:09:10,898 empowerment, But of course, these are the um adaptations 218 00:09:10,898 --> 00:09:12,864 these are the um adaptations the uh quick fixes that we have 219 00:09:12,864 --> 00:09:14,731 the uh quick fixes that we have identified but we uh we need to 220 00:09:14,731 --> 00:09:17,896 identified but we uh we need to look beyond that of the uh. 221 00:09:17,896 --> 00:09:20,363 look beyond that of the uh. Sector will play an absolute 222 00:09:20,363 --> 00:09:24,430 Sector will play an absolute critical role in financing the 223 00:09:24,430 --> 00:09:26,364 critical role in financing the projects that would be needed 224 00:09:26,364 --> 00:09:29,164 projects that would be needed for uh recovery in uh in Europe 225 00:09:29,164 --> 00:09:32,563 for uh recovery in uh in Europe uh after the pandemic um only a 226 00:09:32,563 --> 00:09:34,431 uh after the pandemic um only a fraction of the financing will 227 00:09:34,431 --> 00:09:35,597 fraction of the financing will come from the public sector, 228 00:09:35,597 --> 00:09:37,997 come from the public sector, the bank will need to come from 229 00:09:37,997 --> 00:09:40,597 the bank will need to come from uh the uh the private sector 230 00:09:40,597 --> 00:09:43,730 uh the uh the private sector and here I think that uh what 231 00:09:43,730 --> 00:09:47,397 and here I think that uh what we see is a confirmation of. 232 00:09:47,397 --> 00:09:48,097 we see is a confirmation of. Policies which had been 233 00:09:48,097 --> 00:09:51,364 Policies which had been launched uh already for a while 234 00:09:51,364 --> 00:09:53,896 launched uh already for a while uh in Europe and uh we would 235 00:09:53,896 --> 00:09:55,431 uh in Europe and uh we would argue that these policies need 236 00:09:55,431 --> 00:09:57,964 argue that these policies need to be accelerated. Uh this is 237 00:09:57,964 --> 00:10:00,064 to be accelerated. Uh this is true for uh the capital markets 238 00:10:00,064 --> 00:10:02,130 true for uh the capital markets Union of course, in order to 239 00:10:02,130 --> 00:10:04,130 Union of course, in order to fund the recovery we will need 240 00:10:04,130 --> 00:10:07,831 fund the recovery we will need uh well developed uh agile 241 00:10:07,831 --> 00:10:09,797 uh well developed uh agile effective uh market-based 242 00:10:09,797 --> 00:10:11,997 effective uh market-based financing in Europe. we will 243 00:10:11,997 --> 00:10:13,998 financing in Europe. we will need obviously a healthy 244 00:10:13,998 --> 00:10:15,463 need obviously a healthy banking sector. I think we do 245 00:10:15,463 --> 00:10:17,163 banking sector. I think we do have a healthy banking sector 246 00:10:17,163 --> 00:10:19,130 have a healthy banking sector right now, which as was said, 247 00:10:19,130 --> 00:10:21,998 right now, which as was said, is a part. Solution instead of 248 00:10:21,998 --> 00:10:24,063 is a part. Solution instead of being a part of the problem as 249 00:10:24,063 --> 00:10:25,964 being a part of the problem as in the past, but we do think in 250 00:10:25,964 --> 00:10:28,031 in the past, but we do think in the commission that uh 251 00:10:28,031 --> 00:10:29,564 the commission that uh discussions on uh on banking 252 00:10:29,564 --> 00:10:32,096 discussions on uh on banking union uh should uh continue to 253 00:10:32,096 --> 00:10:34,130 union uh should uh continue to should accelerate because uh as 254 00:10:34,130 --> 00:10:35,964 should accelerate because uh as you know banking union is still 255 00:10:35,964 --> 00:10:38,064 you know banking union is still not completed. and we think 256 00:10:38,064 --> 00:10:40,264 not completed. and we think that for confidence in the 257 00:10:40,264 --> 00:10:42,331 that for confidence in the banking sector uh confidence in 258 00:10:42,331 --> 00:10:45,497 banking sector uh confidence in the banking environment uh 259 00:10:45,497 --> 00:10:46,197 the banking environment uh finalizing a banking union 260 00:10:46,197 --> 00:10:48,297 finalizing a banking union would be uh would be of high 261 00:10:48,297 --> 00:10:49,864 would be uh would be of high value and then I would mention. 262 00:10:49,864 --> 00:10:52,464 value and then I would mention. Of course, uh two other 263 00:10:52,464 --> 00:10:59,097 Of course, uh two other flagship policies um digital 264 00:10:59,097 --> 00:10:59,797 flagship policies um digital transformation uh we need to do 265 00:10:59,797 --> 00:11:01,964 transformation uh we need to do more in order to support a new 266 00:11:01,964 --> 00:11:04,397 more in order to support a new technologies to take up of new 267 00:11:04,397 --> 00:11:05,697 technologies to take up of new technologies in the financial 268 00:11:05,697 --> 00:11:07,597 technologies in the financial sector in the U and that is why 269 00:11:07,597 --> 00:11:09,997 sector in the U and that is why we will table uh uh an action 270 00:11:09,997 --> 00:11:11,596 we will table uh uh an action plan in disregard at the end of 271 00:11:11,596 --> 00:11:15,130 plan in disregard at the end of the year and uh finally uh we 272 00:11:15,130 --> 00:11:17,831 the year and uh finally uh we need to press on uh with uh the 273 00:11:17,831 --> 00:11:19,763 need to press on uh with uh the uh transition uh to AA low 274 00:11:19,763 --> 00:11:21,996 uh transition uh to AA low carbon. Economy and a low 275 00:11:21,996 --> 00:11:24,596 carbon. Economy and a low carbon society and here we need 276 00:11:24,596 --> 00:11:26,896 carbon society and here we need uh we need a renewed 277 00:11:26,896 --> 00:11:28,763 uh we need a renewed sustainable finances strategy, 278 00:11:28,763 --> 00:11:31,831 sustainable finances strategy, which we plan to uh to table uh 279 00:11:31,831 --> 00:11:33,596 which we plan to uh to table uh towards uh the end of the year 280 00:11:33,596 --> 00:11:39,330 towards uh the end of the year uh uh uh uh at the latest. 281 00:11:42,997 --> 00:11:46,496 We lost two um uh Nicola uh we 282 00:11:46,496 --> 00:11:50,230 We lost two um uh Nicola uh we lost in. 283 00:11:52,431 --> 00:11:54,897 Yeah. okay. um so lots of 284 00:11:54,897 --> 00:11:56,130 Yeah. okay. um so lots of follow-on questions uh to come 285 00:11:56,130 --> 00:11:57,496 follow-on questions uh to come and this agenda of course, but 286 00:11:57,496 --> 00:12:00,164 and this agenda of course, but first let’s look at it from 287 00:12:00,164 --> 00:12:01,997 first let’s look at it from outside the noir your head of 288 00:12:01,997 --> 00:12:04,164 outside the noir your head of the innovation hub at the Bank 289 00:12:04,164 --> 00:12:05,464 the innovation hub at the Bank for international settlements. 290 00:12:05,464 --> 00:12:06,997 for international settlements. Of course, everybody knows uh 291 00:12:06,997 --> 00:12:08,197 Of course, everybody knows uh your experience at the European 292 00:12:08,197 --> 00:12:09,496 your experience at the European Central Bank that are now 293 00:12:09,496 --> 00:12:11,098 Central Bank that are now outside of the European Union 294 00:12:11,098 --> 00:12:12,530 outside of the European Union and outside of the eurozone in 295 00:12:12,530 --> 00:12:13,997 and outside of the eurozone in battles. So how does it look at 296 00:12:13,997 --> 00:12:15,197 battles. So how does it look at it from uh? how do how do you 297 00:12:15,197 --> 00:12:17,464 it from uh? how do how do you look at it and uh look at 298 00:12:17,464 --> 00:12:19,130 look at it and uh look at European financial challenges 299 00:12:19,130 --> 00:12:20,730 European financial challenges from the global levels so to 300 00:12:20,730 --> 00:12:23,531 from the global levels so to say? So, yes, thank you Quran 301 00:12:23,531 --> 00:12:26,130 say? So, yes, thank you Quran good afternoon from from basil. 302 00:12:26,130 --> 00:12:27,530 good afternoon from from basil. so um so I will take a global 303 00:12:27,530 --> 00:12:29,498 so um so I will take a global perspective as you invite me to 304 00:12:29,498 --> 00:12:30,164 perspective as you invite me to do and I will be happy to dig 305 00:12:30,164 --> 00:12:31,730 do and I will be happy to dig deeper into uh into Europe and 306 00:12:31,730 --> 00:12:33,897 deeper into uh into Europe and issues later, but let me start 307 00:12:33,897 --> 00:12:35,364 issues later, but let me start from the view from bezel, which 308 00:12:35,364 --> 00:12:39,063 from the view from bezel, which is a global view um and as a 309 00:12:39,063 --> 00:12:40,530 is a global view um and as a short, the short version is uh 310 00:12:40,530 --> 00:12:42,930 short, the short version is uh we we are at the juncture where 311 00:12:42,930 --> 00:12:44,398 we we are at the juncture where more than ever we need 312 00:12:44,398 --> 00:12:46,130 more than ever we need International Corporation 313 00:12:46,130 --> 00:12:46,864 International Corporation International Corporation is of 314 00:12:46,864 --> 00:12:49,397 International Corporation is of the essence and I’ll tell you 315 00:12:49,397 --> 00:12:51,164 the essence and I’ll tell you why uh, but it’s not clear how 316 00:12:51,164 --> 00:12:53,831 why uh, but it’s not clear how it can be delivered so uh high 317 00:12:53,831 --> 00:12:57,064 it can be delivered so uh high demand short supply um. Um and 318 00:12:57,064 --> 00:12:59,930 demand short supply um. Um and I see I see the demand for 319 00:12:59,930 --> 00:13:00,996 I see I see the demand for international corporation both 320 00:13:00,996 --> 00:13:03,930 international corporation both in the medical and at the Grand 321 00:13:03,930 --> 00:13:06,430 in the medical and at the Grand Junction uh at the at the micro 322 00:13:06,430 --> 00:13:07,597 Junction uh at the at the micro mentioned when you look at the 323 00:13:07,597 --> 00:13:08,931 mentioned when you look at the global financial markets, you 324 00:13:08,931 --> 00:13:11,398 global financial markets, you can see that the crisis in the 325 00:13:11,398 --> 00:13:13,431 can see that the crisis in the in the spring has uncovered uh 326 00:13:13,431 --> 00:13:16,830 in the spring has uncovered uh uh uh in in the price discovery 327 00:13:16,830 --> 00:13:18,530 uh uh in in the price discovery mechanisms in global financial 328 00:13:18,530 --> 00:13:20,163 mechanisms in global financial markets, which uh central banks 329 00:13:20,163 --> 00:13:21,564 markets, which uh central banks have to fix by throwing a 330 00:13:21,564 --> 00:13:23,864 have to fix by throwing a lifeline to uh to a number of 331 00:13:23,864 --> 00:13:25,430 lifeline to uh to a number of market segments and enhanced. 332 00:13:25,430 --> 00:13:27,063 market segments and enhanced. Key to a number of non 333 00:13:27,063 --> 00:13:29,164 Key to a number of non financial institutions to make 334 00:13:29,164 --> 00:13:31,964 financial institutions to make them function functional again 335 00:13:31,964 --> 00:13:33,931 them function functional again um and it’s one thing to to a 336 00:13:33,931 --> 00:13:36,063 um and it’s one thing to to a little bounce to uh to uh it’s 337 00:13:36,063 --> 00:13:39,864 little bounce to uh to uh it’s it’s one thing to um to um uh 338 00:13:39,864 --> 00:13:41,496 it’s one thing to um to um uh to allow banks to use their 339 00:13:41,496 --> 00:13:43,063 to allow banks to use their first or in a in the face of an 340 00:13:43,063 --> 00:13:45,064 first or in a in the face of an acute crisis. But uh it’s 341 00:13:45,064 --> 00:13:46,564 acute crisis. But uh it’s another one to let them keep 342 00:13:46,564 --> 00:13:48,130 another one to let them keep depleted by referrals or or to 343 00:13:48,130 --> 00:13:49,697 depleted by referrals or or to build a non-performing loans in 344 00:13:49,697 --> 00:13:51,930 build a non-performing loans in the recovery phase so the first 345 00:13:51,930 --> 00:13:53,663 the recovery phase so the first message here is uh if we want 346 00:13:53,663 --> 00:13:54,930 message here is uh if we want to keep the global financial 347 00:13:54,930 --> 00:13:58,431 to keep the global financial system resilience uh we need to 348 00:13:58,431 --> 00:13:59,864 system resilience uh we need to uh to avoid dialing back 349 00:13:59,864 --> 00:14:02,931 uh to avoid dialing back everything we. Since 2008, and 350 00:14:02,931 --> 00:14:04,163 everything we. Since 2008, and that’s that’s of course 351 00:14:04,163 --> 00:14:05,398 that’s that’s of course important that the European 352 00:14:05,398 --> 00:14:06,831 important that the European level, but it’s it’s a global 353 00:14:06,831 --> 00:14:08,297 level, but it’s it’s a global discussion, and the second 354 00:14:08,297 --> 00:14:09,331 discussion, and the second thing is that we need a new 355 00:14:09,331 --> 00:14:10,931 thing is that we need a new impulse uh to uh to improve the 356 00:14:10,931 --> 00:14:13,063 impulse uh to uh to improve the resilience of Market-based 357 00:14:13,063 --> 00:14:13,897 resilience of Market-based finance and that’s I mean, 358 00:14:13,897 --> 00:14:15,030 finance and that’s I mean, honestly that’s worth the 359 00:14:15,030 --> 00:14:15,931 honestly that’s worth the financial stability Board has 360 00:14:15,931 --> 00:14:17,764 financial stability Board has left unfinished, but I can say 361 00:14:17,764 --> 00:14:19,097 left unfinished, but I can say that now that I’m no longer a 362 00:14:19,097 --> 00:14:22,497 that now that I’m no longer a member of it uh and uh and we 363 00:14:22,497 --> 00:14:24,097 member of it uh and uh and we don’t want to we don’t want we 364 00:14:24,097 --> 00:14:25,464 don’t want to we don’t want we don’t want central banks to be 365 00:14:25,464 --> 00:14:27,363 don’t want central banks to be on the who in the future to 366 00:14:27,363 --> 00:14:29,363 on the who in the future to bail out a non banking areas 367 00:14:29,363 --> 00:14:30,930 bail out a non banking areas just as they’ve been under. 368 00:14:30,930 --> 00:14:32,697 just as they’ve been under. It’s a great financial crisis 369 00:14:32,697 --> 00:14:34,697 It’s a great financial crisis to bail out banks, so we need a 370 00:14:34,697 --> 00:14:37,764 to bail out banks, so we need a new agenda to uh to win in a 371 00:14:37,764 --> 00:14:40,130 new agenda to uh to win in a market based science and 372 00:14:40,130 --> 00:14:43,030 market based science and finally on the side or if I had 373 00:14:43,030 --> 00:14:44,963 finally on the side or if I had taken place before December, I 374 00:14:44,963 --> 00:14:45,797 taken place before December, I would probably have skipped 375 00:14:45,797 --> 00:14:48,064 would probably have skipped that I would have stopped there 376 00:14:48,064 --> 00:14:49,864 that I would have stopped there right before the summer. Uh we 377 00:14:49,864 --> 00:14:52,564 right before the summer. Uh we were facing a global symmetric 378 00:14:52,564 --> 00:14:54,397 were facing a global symmetric shock uh support a demand was 379 00:14:54,397 --> 00:14:56,597 shock uh support a demand was needed everywhere uh primarily 380 00:14:56,597 --> 00:14:59,096 needed everywhere uh primarily on domestic instruments and the 381 00:14:59,096 --> 00:15:01,397 on domestic instruments and the and this major coordination 382 00:15:01,397 --> 00:15:03,864 and this major coordination issues uh and I wouldn’t 383 00:15:03,864 --> 00:15:05,131 issues uh and I wouldn’t behaved, which has created a 384 00:15:05,131 --> 00:15:06,997 behaved, which has created a lot of space for emerging 385 00:15:06,997 --> 00:15:10,597 lot of space for emerging market economies, uh but uh now 386 00:15:10,597 --> 00:15:11,897 market economies, uh but uh now in talking in September, uh 387 00:15:11,897 --> 00:15:13,531 in talking in September, uh from where we are now and we 388 00:15:13,531 --> 00:15:14,964 from where we are now and we cannot rule out the diverging 389 00:15:14,964 --> 00:15:16,663 cannot rule out the diverging outcomes in the uh in the 390 00:15:16,663 --> 00:15:18,898 outcomes in the uh in the global economy. A recent 391 00:15:18,898 --> 00:15:20,431 global economy. A recent announcements are created broad 392 00:15:20,431 --> 00:15:22,331 announcements are created broad market expectations that the US 393 00:15:22,331 --> 00:15:23,197 market expectations that the US rates will remain very low for 394 00:15:23,197 --> 00:15:25,630 rates will remain very low for a very long uh if confirmed 395 00:15:25,630 --> 00:15:26,996 a very long uh if confirmed this may have mixed effects on 396 00:15:26,996 --> 00:15:28,731 this may have mixed effects on the global economy, you know if 397 00:15:28,731 --> 00:15:30,563 the global economy, you know if you market economies, or which 398 00:15:30,563 --> 00:15:32,330 you market economies, or which have largely offended, I will 399 00:15:32,330 --> 00:15:34,463 have largely offended, I will benefit at least initially from 400 00:15:34,463 --> 00:15:35,963 benefit at least initially from improved financial conditions 401 00:15:35,963 --> 00:15:38,563 improved financial conditions but increase. And and risk 402 00:15:38,563 --> 00:15:39,597 but increase. And and risk taking they come back later 403 00:15:39,597 --> 00:15:41,197 taking they come back later with a vengeance and you’re 404 00:15:41,197 --> 00:15:42,530 with a vengeance and you’re committed to find new ways to 405 00:15:42,530 --> 00:15:44,497 committed to find new ways to support the economy or in the 406 00:15:44,497 --> 00:15:46,398 support the economy or in the face of a permanently lower. uh 407 00:15:46,398 --> 00:15:48,597 face of a permanently lower. uh US rates and one can 408 00:15:48,597 --> 00:15:50,530 US rates and one can legitimately uh wonder whether 409 00:15:50,530 --> 00:15:52,364 legitimately uh wonder whether this global governance is for 410 00:15:52,364 --> 00:15:54,097 this global governance is for purposes uh to uh to cope with 411 00:15:54,097 --> 00:15:56,731 purposes uh to uh to cope with the new discussion on race and 412 00:15:56,731 --> 00:15:58,331 the new discussion on race and I’m global advances uh the 413 00:15:58,331 --> 00:16:00,463 I’m global advances uh the fabric of the International 414 00:16:00,463 --> 00:16:02,030 fabric of the International Corporation is very thin today. 415 00:16:02,030 --> 00:16:02,697 Corporation is very thin today. So uh these are the two 416 00:16:02,697 --> 00:16:03,864 So uh these are the two questions I wanted to highlight 417 00:16:03,864 --> 00:16:05,064 questions I wanted to highlight and I’m happy to go into the 418 00:16:05,064 --> 00:16:06,397 and I’m happy to go into the year as the details, but of 419 00:16:06,397 --> 00:16:08,864 year as the details, but of course part. This is uh uh a 420 00:16:08,864 --> 00:16:10,797 course part. This is uh uh a bit dependent on the US 421 00:16:10,797 --> 00:16:12,496 bit dependent on the US election, but not all of it uh 422 00:16:12,496 --> 00:16:15,030 election, but not all of it uh and uh and and we’re we’re 423 00:16:15,030 --> 00:16:15,831 and uh and and we’re we’re we’re not have the answers to 424 00:16:15,831 --> 00:16:18,064 we’re not have the answers to that question um, of course in 425 00:16:18,064 --> 00:16:19,163 that question um, of course in the in the course of this panel 426 00:16:19,163 --> 00:16:22,163 the in the course of this panel so uh you’re uh looking at it 427 00:16:22,163 --> 00:16:23,531 so uh you’re uh looking at it from the inside Europe because 428 00:16:23,531 --> 00:16:24,697 from the inside Europe because you’re in Italy, but the the 429 00:16:24,697 --> 00:16:26,264 you’re in Italy, but the the the the very much from the 430 00:16:26,264 --> 00:16:27,764 the the very much from the wizard perspective. What do you 431 00:16:27,764 --> 00:16:29,931 wizard perspective. What do you make of it? should we should we 432 00:16:29,931 --> 00:16:31,397 make of it? should we should we be concerned at this point or 433 00:16:31,397 --> 00:16:34,264 be concerned at this point or should be will be reassured um 434 00:16:34,264 --> 00:16:35,464 should be will be reassured um uh uh I guess audiences panel 435 00:16:35,464 --> 00:16:39,430 uh uh I guess audiences panel with her. Yes, so thank you. 436 00:16:39,430 --> 00:16:41,063 with her. Yes, so thank you. it’s so the privilege of being 437 00:16:41,063 --> 00:16:42,363 it’s so the privilege of being in the last week and I think is 438 00:16:42,363 --> 00:16:43,498 in the last week and I think is that one can be very brief 439 00:16:43,498 --> 00:16:45,064 that one can be very brief because a lot has already been 440 00:16:45,064 --> 00:16:46,730 because a lot has already been said. So I actually share a lot 441 00:16:46,730 --> 00:16:48,931 said. So I actually share a lot of what has been said. So shall 442 00:16:48,931 --> 00:16:50,630 of what has been said. So shall we be assured in a way yes 443 00:16:50,630 --> 00:16:52,497 we be assured in a way yes because as the previous 444 00:16:52,497 --> 00:16:53,964 because as the previous speakers have said the banks 445 00:16:53,964 --> 00:16:57,330 speakers have said the banks have been uh in in fact in this 446 00:16:57,330 --> 00:16:59,464 have been uh in in fact in this case, it’s not an amplifier. we 447 00:16:59,464 --> 00:17:01,164 case, it’s not an amplifier. we haven’t seen the before in the 448 00:17:01,164 --> 00:17:02,430 haven’t seen the before in the corporate sector is not 449 00:17:02,430 --> 00:17:04,597 corporate sector is not significantly so far and what 450 00:17:04,597 --> 00:17:06,264 significantly so far and what we have seen is an increase in 451 00:17:06,264 --> 00:17:08,596 we have seen is an increase in stage two loans for banks, but 452 00:17:08,596 --> 00:17:09,830 stage two loans for banks, but mostly because banks are 453 00:17:09,830 --> 00:17:11,896 mostly because banks are starting to precautionary set. 454 00:17:11,896 --> 00:17:13,631 starting to precautionary set. The provision for the 455 00:17:13,631 --> 00:17:15,431 The provision for the deterioration of the macro 456 00:17:15,431 --> 00:17:16,097 deterioration of the macro economic conditions, so all 457 00:17:16,097 --> 00:17:18,364 economic conditions, so all know the banking set of so far 458 00:17:18,364 --> 00:17:20,097 know the banking set of so far has been able to support the 459 00:17:20,097 --> 00:17:22,996 has been able to support the economy. and also to the public 460 00:17:22,996 --> 00:17:24,330 economy. and also to the public support to the various programs 461 00:17:24,330 --> 00:17:26,464 support to the various programs and there’s not somehow being 462 00:17:26,464 --> 00:17:28,464 and there’s not somehow being affected so much that we should 463 00:17:28,464 --> 00:17:30,430 affected so much that we should not forget that there are in 464 00:17:30,430 --> 00:17:32,097 not forget that there are in any that are two problems. The 465 00:17:32,097 --> 00:17:33,697 any that are two problems. The first one is that all banks 466 00:17:33,697 --> 00:17:35,398 first one is that all banks have a lot of capital is 467 00:17:35,398 --> 00:17:37,496 have a lot of capital is Alexandra said they have, 468 00:17:37,496 --> 00:17:39,563 Alexandra said they have, according to the EBA, they have 469 00:17:39,563 --> 00:17:41,863 according to the EBA, they have a 50% of their loans to loan 470 00:17:41,863 --> 00:17:43,464 a 50% of their loans to loan corporate uh to loan financial. 471 00:17:43,464 --> 00:17:47,197 corporate uh to loan financial. For your that are supposed to 472 00:17:47,197 --> 00:17:48,863 For your that are supposed to be conducted, this means that 473 00:17:48,863 --> 00:17:51,164 be conducted, this means that the risk of an increase in the 474 00:17:51,164 --> 00:17:53,364 the risk of an increase in the problem and most people banks 475 00:17:53,364 --> 00:17:54,930 problem and most people banks is quite substantial going 476 00:17:54,930 --> 00:17:56,464 is quite substantial going forward. So what I have my two 477 00:17:56,464 --> 00:17:59,163 forward. So what I have my two main concern at this stage, The 478 00:17:59,163 --> 00:17:59,763 main concern at this stage, The first one is the level of 479 00:17:59,763 --> 00:18:01,064 first one is the level of profitability with the European 480 00:18:01,064 --> 00:18:03,131 profitability with the European banking sector and this is a 481 00:18:03,131 --> 00:18:04,898 banking sector and this is a concern that somehow was 482 00:18:04,898 --> 00:18:06,397 concern that somehow was already there before the 483 00:18:06,397 --> 00:18:08,431 already there before the classes and even more now 484 00:18:08,431 --> 00:18:11,197 classes and even more now because of course the prophet 485 00:18:11,197 --> 00:18:12,097 because of course the prophet is bound to decrease and not 486 00:18:12,097 --> 00:18:12,998 is bound to decrease and not only for the increasing 487 00:18:12,998 --> 00:18:14,830 only for the increasing categories, but for the whole 488 00:18:14,830 --> 00:18:19,330 categories, but for the whole situation overall, if not at. 489 00:18:47,430 --> 00:18:50,930 In terms of how we help the 490 00:18:50,930 --> 00:18:51,730 In terms of how we help the financials on how we have the 491 00:18:51,730 --> 00:18:53,031 financials on how we have the banks so we have improved so 492 00:18:53,031 --> 00:18:55,164 banks so we have improved so much so far, so there hasn’t 493 00:18:55,164 --> 00:18:58,830 much so far, so there hasn’t been change in state on God’s 494 00:18:58,830 --> 00:18:59,463 been change in state on God’s concern proportional 495 00:18:59,463 --> 00:19:00,497 concern proportional utilization. We still have the 496 00:19:00,497 --> 00:19:01,996 utilization. We still have the rules of the different prizes 497 00:19:01,996 --> 00:19:04,431 rules of the different prizes and they share the view of 498 00:19:04,431 --> 00:19:06,330 and they share the view of pizza that let me help you 499 00:19:06,330 --> 00:19:08,130 pizza that let me help you hasn’t been there been a change 500 00:19:08,130 --> 00:19:10,998 hasn’t been there been a change in the state stands on 501 00:19:10,998 --> 00:19:12,864 in the state stands on precaution in March, but the 502 00:19:12,864 --> 00:19:14,230 precaution in March, but the this was for non-financial. 503 00:19:14,230 --> 00:19:15,497 this was for non-financial. It’s mostly. I was I mean, 504 00:19:15,497 --> 00:19:17,263 It’s mostly. I was I mean, maybe not those better than I 505 00:19:17,263 --> 00:19:19,197 maybe not those better than I do, but for banks it hasn’t 506 00:19:19,197 --> 00:19:20,264 do, but for banks it hasn’t been matched to to my 507 00:19:20,264 --> 00:19:20,830 been matched to to my knowledge. I mean my 508 00:19:20,830 --> 00:19:23,496 knowledge. I mean my understanding of. Communication 509 00:19:23,496 --> 00:19:25,996 understanding of. Communication and uh allow precaution recap 510 00:19:25,996 --> 00:19:28,130 and uh allow precaution recap with Albert and sharing uh can 511 00:19:28,130 --> 00:19:30,530 with Albert and sharing uh can you enlighten us? Uh yeah, I 512 00:19:30,530 --> 00:19:34,664 you enlighten us? Uh yeah, I think this is correct indeed. I 513 00:19:34,664 --> 00:19:36,164 think this is correct indeed. I thought that there was maybe 514 00:19:36,164 --> 00:19:38,431 thought that there was maybe then II don’t know very well, 515 00:19:38,431 --> 00:19:39,230 then II don’t know very well, but I thought that there was an 516 00:19:39,230 --> 00:19:40,397 but I thought that there was an article in the communication of 517 00:19:40,397 --> 00:19:43,531 article in the communication of state they the compulsion 518 00:19:43,531 --> 00:19:44,397 state they the compulsion capitalization, but it was 519 00:19:44,397 --> 00:19:46,497 capitalization, but it was quite let me say I wouldn’t 520 00:19:46,497 --> 00:19:47,697 quite let me say I wouldn’t want to use the word the big, 521 00:19:47,697 --> 00:19:48,964 want to use the word the big, but it wasn’t a very well spell 522 00:19:48,964 --> 00:19:50,564 but it wasn’t a very well spell out so but in any case the 523 00:19:50,564 --> 00:19:52,330 out so but in any case the percussion of the civilization 524 00:19:52,330 --> 00:19:53,930 percussion of the civilization they maybe it is one of the 525 00:19:53,930 --> 00:19:54,797 they maybe it is one of the main concern that we’re going 526 00:19:54,797 --> 00:19:56,031 main concern that we’re going to see going forward for banks 527 00:19:56,031 --> 00:19:58,497 to see going forward for banks and the second one I share the 528 00:19:58,497 --> 00:20:01,163 and the second one I share the concern of a pizza that on the 529 00:20:01,163 --> 00:20:02,463 concern of a pizza that on the resolution so the beer this is 530 00:20:02,463 --> 00:20:04,230 resolution so the beer this is not meant for the system. Isis 531 00:20:04,230 --> 00:20:07,530 not meant for the system. Isis is meant to more initially it 532 00:20:07,530 --> 00:20:08,997 is meant to more initially it was meant for an individual 533 00:20:08,997 --> 00:20:10,730 was meant for an individual reducing traffic problem. The 534 00:20:10,730 --> 00:20:11,930 reducing traffic problem. The tool of is going to be 535 00:20:11,930 --> 00:20:13,796 tool of is going to be problematic in a systemic 536 00:20:13,796 --> 00:20:15,930 problematic in a systemic crisis, so the question is 537 00:20:15,930 --> 00:20:19,564 crisis, so the question is whether we should adopt the DD 538 00:20:19,564 --> 00:20:19,997 whether we should adopt the DD to the current situation 539 00:20:19,997 --> 00:20:21,430 to the current situation eventually or we should rather 540 00:20:21,430 --> 00:20:23,697 eventually or we should rather feel of a different foreign to 541 00:20:23,697 --> 00:20:27,831 feel of a different foreign to deal with the banks many you’re 542 00:20:27,831 --> 00:20:31,431 deal with the banks many you’re uh I wanna one of your many um 543 00:20:31,431 --> 00:20:33,330 uh I wanna one of your many um uh uh duties uh uh uh outside 544 00:20:33,330 --> 00:20:36,430 uh uh duties uh uh uh outside is that you’re. A board member 545 00:20:36,430 --> 00:20:38,431 is that you’re. A board member of credit uh which is uh a 546 00:20:38,431 --> 00:20:39,197 of credit uh which is uh a generous sponsor of frugal 547 00:20:39,197 --> 00:20:40,496 generous sponsor of frugal which uh for which we’re we’re 548 00:20:40,496 --> 00:20:42,797 which uh for which we’re we’re grateful. uh do you do you? do 549 00:20:42,797 --> 00:20:45,430 grateful. uh do you do you? do you see a banking market 550 00:20:45,430 --> 00:20:48,464 you see a banking market evolving uh in the absence of 551 00:20:48,464 --> 00:20:51,997 evolving uh in the absence of new um a new policy 552 00:20:51,997 --> 00:20:53,664 new um a new policy initiatives. so do you or would 553 00:20:53,664 --> 00:20:55,197 initiatives. so do you or would you say all banks at this point 554 00:20:55,197 --> 00:20:58,330 you say all banks at this point are purely defensive mode given 555 00:20:58,330 --> 00:20:59,964 are purely defensive mode given the magnitude of a shock? I 556 00:20:59,964 --> 00:21:00,730 the magnitude of a shock? I think the banks and the 557 00:21:00,730 --> 00:21:02,197 think the banks and the development are in capital 558 00:21:02,197 --> 00:21:03,031 development are in capital preservation mode, at least 559 00:21:03,031 --> 00:21:05,497 preservation mode, at least that this is the way. At the 560 00:21:05,497 --> 00:21:07,031 that this is the way. At the fat or what they’re doing now, 561 00:21:07,031 --> 00:21:08,397 fat or what they’re doing now, so they’re not looking to 562 00:21:08,397 --> 00:21:09,864 so they’re not looking to generate the profit at the 563 00:21:09,864 --> 00:21:11,797 generate the profit at the moment that they are trying to 564 00:21:11,797 --> 00:21:15,831 moment that they are trying to preserve capital. 565 00:21:47,397 --> 00:21:49,164 Two functionalities on this one 566 00:21:49,164 --> 00:21:50,997 Two functionalities on this one is the possibility to ask 567 00:21:50,997 --> 00:21:52,264 is the possibility to ask questions and I will monitor 568 00:21:52,264 --> 00:21:54,130 questions and I will monitor the questions that get asked 569 00:21:54,130 --> 00:21:56,230 the questions that get asked and slide off or moments as one 570 00:21:56,230 --> 00:21:57,931 and slide off or moments as one uh. but there’s another one 571 00:21:57,931 --> 00:21:59,797 uh. but there’s another one which is a pool and we have a 572 00:21:59,797 --> 00:22:01,130 which is a pool and we have a poll question to you all who 573 00:22:01,130 --> 00:22:03,997 poll question to you all who are into or do European banks 574 00:22:03,997 --> 00:22:04,930 are into or do European banks generally have enough capital 575 00:22:04,930 --> 00:22:06,397 generally have enough capital to where it’s could be nineteen 576 00:22:06,397 --> 00:22:08,297 to where it’s could be nineteen recession, which is a running 577 00:22:08,297 --> 00:22:09,930 recession, which is a running theme of the discussion We 578 00:22:09,930 --> 00:22:11,398 theme of the discussion We already have and I think 579 00:22:11,398 --> 00:22:13,164 already have and I think something will come back to so 580 00:22:13,164 --> 00:22:15,164 something will come back to so I encourage you uh as many as 581 00:22:15,164 --> 00:22:18,330 I encourage you uh as many as possible. To answer the poll 582 00:22:18,330 --> 00:22:19,631 possible. To answer the poll question because we will be 583 00:22:19,631 --> 00:22:21,431 question because we will be interested in your collective 584 00:22:21,431 --> 00:22:23,964 interested in your collective wisdom uh and uh and II will 585 00:22:23,964 --> 00:22:26,996 wisdom uh and uh and II will also monitor the questions. 586 00:22:26,996 --> 00:22:30,331 also monitor the questions. Answer on Q and A. um the one 587 00:22:30,331 --> 00:22:32,031 Answer on Q and A. um the one question which I think is uh is 588 00:22:32,031 --> 00:22:34,330 question which I think is uh is is is one I’d like to ask 589 00:22:34,330 --> 00:22:35,964 is is one I’d like to ask Spartan uh and then anonymous 590 00:22:35,964 --> 00:22:38,530 Spartan uh and then anonymous uh fantastic. It’s just really 591 00:22:38,530 --> 00:22:39,930 uh fantastic. It’s just really the right time to press forward 592 00:22:39,930 --> 00:22:41,797 the right time to press forward with the green finance agenda 593 00:22:41,797 --> 00:22:43,897 with the green finance agenda and I guess that’s connects 594 00:22:43,897 --> 00:22:45,697 and I guess that’s connects with uh a general discussion 595 00:22:45,697 --> 00:22:47,930 with uh a general discussion uh. A commission right now 596 00:22:47,930 --> 00:22:51,896 uh. A commission right now whether it’s uh climate uh to 597 00:22:51,896 --> 00:22:53,730 whether it’s uh climate uh to fight against climate change is 598 00:22:53,730 --> 00:22:55,697 fight against climate change is the luxury we can’t afford 599 00:22:55,697 --> 00:22:56,964 the luxury we can’t afford given to magnitude those a 600 00:22:56,964 --> 00:22:59,363 given to magnitude those a short-term economy pressures 601 00:22:59,363 --> 00:23:01,964 short-term economy pressures and uh and and and so um I 602 00:23:01,964 --> 00:23:03,696 and uh and and and so um I guess the answer is yes, Of 603 00:23:03,696 --> 00:23:04,664 guess the answer is yes, Of course, we should continue 604 00:23:04,664 --> 00:23:06,630 course, we should continue pressing to refinance agenda, 605 00:23:06,630 --> 00:23:08,530 pressing to refinance agenda, but it can can you give us a 606 00:23:08,530 --> 00:23:10,730 but it can can you give us a bit more color and also uh how 607 00:23:10,730 --> 00:23:13,097 bit more color and also uh how you sing the green agenda will 608 00:23:13,097 --> 00:23:14,163 you sing the green agenda will be articulated with our 609 00:23:14,163 --> 00:23:17,398 be articulated with our initiatives in your area which. 610 00:23:17,398 --> 00:23:21,063 initiatives in your area which. REFGG financial services and 611 00:23:21,063 --> 00:23:21,497 REFGG financial services and regulation well, very briefly 612 00:23:21,497 --> 00:23:23,597 regulation well, very briefly we are in the situation where 613 00:23:23,597 --> 00:23:26,364 we are in the situation where uh in a way we have to rebuild 614 00:23:26,364 --> 00:23:28,963 uh in a way we have to rebuild uh parts of our economies and I 615 00:23:28,963 --> 00:23:31,464 uh parts of our economies and I think we need to do that uh in 616 00:23:31,464 --> 00:23:34,496 think we need to do that uh in a in a sustainable manner. Uh 617 00:23:34,496 --> 00:23:36,863 a in a sustainable manner. Uh there’s no uh there’s no point 618 00:23:36,863 --> 00:23:38,430 there’s no uh there’s no point in trying to rebuild our 619 00:23:38,430 --> 00:23:41,530 in trying to rebuild our economies uh closing our eyes 620 00:23:41,530 --> 00:23:44,131 economies uh closing our eyes to uh to the major uh 621 00:23:44,131 --> 00:23:47,030 to uh to the major uh environmental uh uh. That are 622 00:23:47,030 --> 00:23:50,797 environmental uh uh. That are in front of us and which uh you 623 00:23:50,797 --> 00:23:53,430 in front of us and which uh you know can severely uh penalize 624 00:23:53,430 --> 00:23:56,896 know can severely uh penalize the sustainability of economic 625 00:23:56,896 --> 00:23:57,764 the sustainability of economic recovery going forward. so 626 00:23:57,764 --> 00:23:59,164 recovery going forward. so since we have to rebuild parts 627 00:23:59,164 --> 00:24:01,397 since we have to rebuild parts of our economies, uh we may as 628 00:24:01,397 --> 00:24:04,864 of our economies, uh we may as well uh rebuild our economies 629 00:24:04,864 --> 00:24:06,998 well uh rebuild our economies um making sure that we 630 00:24:06,998 --> 00:24:09,397 um making sure that we accelerate the transition uh 631 00:24:09,397 --> 00:24:12,231 accelerate the transition uh towards uh towards a more green 632 00:24:12,231 --> 00:24:13,731 towards uh towards a more green uh green economy. I think this 633 00:24:13,731 --> 00:24:15,163 uh green economy. I think this is needed for environmental 634 00:24:15,163 --> 00:24:17,330 is needed for environmental reasons and uh it is needed as 635 00:24:17,330 --> 00:24:20,430 reasons and uh it is needed as well. Ultimately for. Uh 636 00:24:20,430 --> 00:24:22,396 well. Ultimately for. Uh economic reasons I think there 637 00:24:22,396 --> 00:24:24,497 economic reasons I think there are uh high expectations in 638 00:24:24,497 --> 00:24:27,830 are uh high expectations in this regard uh in uh in society 639 00:24:27,830 --> 00:24:32,398 this regard uh in uh in society um uh uh amongst citizens and 640 00:24:32,398 --> 00:24:34,531 um uh uh amongst citizens and um as you know uh Nicola the 641 00:24:34,531 --> 00:24:37,297 um as you know uh Nicola the way we see uh this is that 642 00:24:37,297 --> 00:24:40,530 way we see uh this is that actually we can turn the EU 643 00:24:40,530 --> 00:24:43,998 actually we can turn the EU green deal into into a growth 644 00:24:43,998 --> 00:24:46,431 green deal into into a growth strategy uh and there are 645 00:24:46,431 --> 00:24:48,864 strategy uh and there are various avenues through which 646 00:24:48,864 --> 00:24:51,697 various avenues through which uh we can you know. Achieve 647 00:24:51,697 --> 00:24:54,464 uh we can you know. Achieve both aims uh named the Greening 648 00:24:54,464 --> 00:24:57,030 both aims uh named the Greening Greening the economy, but also 649 00:24:57,030 --> 00:24:58,396 Greening the economy, but also making sure that uh in a number 650 00:24:58,396 --> 00:25:01,064 making sure that uh in a number of areas which are crucial in 651 00:25:01,064 --> 00:25:02,630 of areas which are crucial in order to bring the economy uh 652 00:25:02,630 --> 00:25:05,996 order to bring the economy uh Europe uh becomes uh a world 653 00:25:05,996 --> 00:25:08,097 Europe uh becomes uh a world leader. uh so that uh the 654 00:25:08,097 --> 00:25:09,931 leader. uh so that uh the screening of the economy uh is 655 00:25:09,931 --> 00:25:13,863 screening of the economy uh is also beneficial for um uh for 656 00:25:13,863 --> 00:25:15,998 also beneficial for um uh for growth in uh in uh in the long 657 00:25:15,998 --> 00:25:18,264 growth in uh in uh in the long run, so we we really do not 658 00:25:18,264 --> 00:25:20,163 run, so we we really do not think that we have uh any uh 659 00:25:20,163 --> 00:25:21,631 think that we have uh any uh any alternative here, which 660 00:25:21,631 --> 00:25:24,297 any alternative here, which doesn’t mean that. Uh it has to 661 00:25:24,297 --> 00:25:26,330 doesn’t mean that. Uh it has to be all about Greening the 662 00:25:26,330 --> 00:25:27,997 be all about Greening the economy uh as you know the 663 00:25:27,997 --> 00:25:31,964 economy uh as you know the second main pillar is the 664 00:25:31,964 --> 00:25:32,663 second main pillar is the digital transformation where we 665 00:25:32,663 --> 00:25:34,764 digital transformation where we do think as well that we can uh 666 00:25:34,764 --> 00:25:36,097 do think as well that we can uh you know uh harness the 667 00:25:36,097 --> 00:25:40,730 you know uh harness the benefits of digitalization. Bou 668 00:25:40,730 --> 00:25:43,997 benefits of digitalization. Bou ounces 669 00:26:15,497 --> 00:26:17,131 That can create new sources of 670 00:26:17,131 --> 00:26:18,631 That can create new sources of divergence so we should take 671 00:26:18,631 --> 00:26:23,497 divergence so we should take for instance uh digitalization 672 00:26:23,497 --> 00:26:24,697 for instance uh digitalization uh there is a risk there’s a 673 00:26:24,697 --> 00:26:25,464 uh there is a risk there’s a different economies will uh 674 00:26:25,464 --> 00:26:28,031 different economies will uh will um we embrace a new wave 675 00:26:28,031 --> 00:26:29,930 will um we embrace a new wave of digitalization of different 676 00:26:29,930 --> 00:26:32,398 of digitalization of different speeds um and when it comes to 677 00:26:32,398 --> 00:26:32,964 speeds um and when it comes to technology, we not take all is 678 00:26:32,964 --> 00:26:35,164 technology, we not take all is the name of the game, and that 679 00:26:35,164 --> 00:26:36,964 the name of the game, and that might also be true of uh of 680 00:26:36,964 --> 00:26:39,164 might also be true of uh of greens of the green and a great 681 00:26:39,164 --> 00:26:40,930 greens of the green and a great sign. So we show in the world 682 00:26:40,930 --> 00:26:42,964 sign. So we show in the world where a lot of the small guys 683 00:26:42,964 --> 00:26:43,831 where a lot of the small guys will be deeply hurt by 684 00:26:43,831 --> 00:26:45,931 will be deeply hurt by surprises or you’ll see lots of 685 00:26:45,931 --> 00:26:49,596 surprises or you’ll see lots of SMEs going going. You’ll see a 686 00:26:49,596 --> 00:26:51,664 SMEs going going. You’ll see a zombie firm going up etcetera 687 00:26:51,664 --> 00:26:53,398 zombie firm going up etcetera and on the other hand, you’ll 688 00:26:53,398 --> 00:26:55,997 and on the other hand, you’ll see a large global companies 689 00:26:55,997 --> 00:26:57,564 see a large global companies kind of capturing all the all 690 00:26:57,564 --> 00:26:59,631 kind of capturing all the all the gains from this crisis and 691 00:26:59,631 --> 00:27:00,763 the gains from this crisis and it’s I know it’s a very awful 692 00:27:00,763 --> 00:27:01,730 it’s I know it’s a very awful way to put it, but that’s the 693 00:27:01,730 --> 00:27:03,964 way to put it, but that’s the way to think about it. um if 694 00:27:03,964 --> 00:27:05,531 way to think about it. um if you if you are in the way of 695 00:27:05,531 --> 00:27:08,297 you if you are in the way of the but those who will uh will 696 00:27:08,297 --> 00:27:09,463 the but those who will uh will be the first movers will 697 00:27:09,463 --> 00:27:10,496 be the first movers will capture all of the gains and 698 00:27:10,496 --> 00:27:12,063 capture all of the gains and that can create a deep 699 00:27:12,063 --> 00:27:13,197 that can create a deep divergence in the longer term 700 00:27:13,197 --> 00:27:15,230 divergence in the longer term and as a European, a very much 701 00:27:15,230 --> 00:27:20,097 and as a European, a very much that uh that’s the opportunity. 702 00:27:21,930 --> 00:27:24,531 The question uh I think which 703 00:27:24,531 --> 00:27:28,264 The question uh I think which most Alexandra and um and noir 704 00:27:28,264 --> 00:27:31,230 most Alexandra and um and noir uh uh in terms of the force in 705 00:27:31,230 --> 00:27:33,496 uh uh in terms of the force in the future is a is a withdrawal 706 00:27:33,496 --> 00:27:34,931 the future is a is a withdrawal of also extraordinary support 707 00:27:34,931 --> 00:27:36,464 of also extraordinary support measures and and and and how 708 00:27:36,464 --> 00:27:38,130 measures and and and and how the financial system will react 709 00:27:38,130 --> 00:27:41,364 the financial system will react when there is a form of exit 710 00:27:41,364 --> 00:27:44,364 when there is a form of exit from uh emergency crisis mode 711 00:27:44,364 --> 00:27:47,497 from uh emergency crisis mode Um you’re to euros a national 712 00:27:47,497 --> 00:27:49,397 Um you’re to euros a national policy maker on this panel also 713 00:27:49,397 --> 00:27:51,197 policy maker on this panel also to say uh so uh this question 714 00:27:51,197 --> 00:27:55,164 to say uh so uh this question maybe to you. uh how. She’s at 715 00:27:55,164 --> 00:27:56,997 maybe to you. uh how. She’s at going forward. Do you think 716 00:27:56,997 --> 00:28:00,096 going forward. Do you think there’s a risk of premature or 717 00:28:00,096 --> 00:28:01,631 there’s a risk of premature or uncoordinated exit from 718 00:28:01,631 --> 00:28:04,330 uncoordinated exit from emergency measures? uh or is it 719 00:28:04,330 --> 00:28:05,396 emergency measures? uh or is it Russia as a country is that the 720 00:28:05,396 --> 00:28:06,963 Russia as a country is that the temptation will be to keep them 721 00:28:06,963 --> 00:28:09,063 temptation will be to keep them for longer and it should really 722 00:28:09,063 --> 00:28:09,997 for longer and it should really be because uh it’s that will 723 00:28:09,997 --> 00:28:11,630 be because uh it’s that will create more hazard. How do you 724 00:28:11,630 --> 00:28:12,863 create more hazard. How do you think about that particular 725 00:28:12,863 --> 00:28:15,164 think about that particular aspect of the challenges of the 726 00:28:15,164 --> 00:28:18,197 aspect of the challenges of the moment? 727 00:28:18,864 --> 00:28:20,163 Well, I think it it, it 728 00:28:20,163 --> 00:28:21,930 Well, I think it it, it shouldn’t be too big of a 729 00:28:21,930 --> 00:28:24,231 shouldn’t be too big of a problem. Uh there is broad 730 00:28:24,231 --> 00:28:25,531 problem. Uh there is broad agreement to what needed to be 731 00:28:25,531 --> 00:28:27,330 agreement to what needed to be done and in theory there should 732 00:28:27,330 --> 00:28:28,697 done and in theory there should be broad agreement that we need 733 00:28:28,697 --> 00:28:30,930 be broad agreement that we need to find a way to land on those 734 00:28:30,930 --> 00:28:33,998 to find a way to land on those capital releases uh and support 735 00:28:33,998 --> 00:28:35,497 capital releases uh and support measures. I’m really concerned 736 00:28:35,497 --> 00:28:36,530 measures. I’m really concerned about the political dynamics of 737 00:28:36,530 --> 00:28:39,064 about the political dynamics of it all and I’m afraid that uh 738 00:28:39,064 --> 00:28:41,497 it all and I’m afraid that uh some people will want to go too 739 00:28:41,497 --> 00:28:42,097 some people will want to go too fast. Some people would want 740 00:28:42,097 --> 00:28:45,197 fast. Some people would want not to do anything and uh so 741 00:28:45,197 --> 00:28:48,264 not to do anything and uh so the. 742 00:29:15,664 --> 00:29:17,197 Then they even existed before 743 00:29:17,197 --> 00:29:19,164 Then they even existed before the crisis on the need to go 744 00:29:19,164 --> 00:29:21,964 the crisis on the need to go back to some kind of normality 745 00:29:21,964 --> 00:29:23,398 back to some kind of normality or to go for something that 746 00:29:23,398 --> 00:29:25,130 or to go for something that would look like at the end of 747 00:29:25,130 --> 00:29:26,597 would look like at the end of the day. going back, I get I 748 00:29:26,597 --> 00:29:27,564 the day. going back, I get I guess to the mistakes that we 749 00:29:27,564 --> 00:29:29,164 guess to the mistakes that we did in the 80s so when I look 750 00:29:29,164 --> 00:29:31,463 did in the 80s so when I look at the political dynamics of it 751 00:29:31,463 --> 00:29:33,964 at the political dynamics of it all and in the US, it’s in 752 00:29:33,964 --> 00:29:35,164 all and in the US, it’s in Europe, you hear more and more 753 00:29:35,164 --> 00:29:37,164 Europe, you hear more and more people saying you know rates 754 00:29:37,164 --> 00:29:39,597 people saying you know rates are very low. so just let’s 755 00:29:39,597 --> 00:29:41,064 are very low. so just let’s spend money and there should 756 00:29:41,064 --> 00:29:42,197 spend money and there should not be any end to it. And so I 757 00:29:42,197 --> 00:29:43,430 not be any end to it. And so I think the commission will have 758 00:29:43,430 --> 00:29:46,564 think the commission will have a role a central role there um. 759 00:29:46,564 --> 00:29:48,330 a role a central role there um. It’s not about going too fast. 760 00:29:48,330 --> 00:29:50,197 It’s not about going too fast. I think we should probably 761 00:29:50,197 --> 00:29:51,431 I think we should probably still need to support the 762 00:29:51,431 --> 00:29:54,231 still need to support the economy in 21 and it will 763 00:29:54,231 --> 00:29:58,130 economy in 21 and it will depend on how it evolves but um 764 00:29:58,130 --> 00:29:59,564 depend on how it evolves but um I think we need to to to build 765 00:29:59,564 --> 00:30:02,264 I think we need to to to build as fast as possible a consensus 766 00:30:02,264 --> 00:30:03,897 as fast as possible a consensus on the need to exit in a way 767 00:30:03,897 --> 00:30:06,663 on the need to exit in a way that is orderly and again as 768 00:30:06,663 --> 00:30:08,031 that is orderly and again as long as we are between 769 00:30:08,031 --> 00:30:09,164 long as we are between academics and people that 770 00:30:09,164 --> 00:30:10,597 academics and people that understand those issues and 771 00:30:10,597 --> 00:30:12,131 understand those issues and they’re in the broad consensus 772 00:30:12,131 --> 00:30:13,164 they’re in the broad consensus about what needs to be done. 773 00:30:13,164 --> 00:30:13,931 about what needs to be done. I’m not concerned. I’m I’m 774 00:30:13,931 --> 00:30:15,063 I’m not concerned. I’m I’m really concerned about it but 775 00:30:15,063 --> 00:30:18,496 really concerned about it but political dynamic. It all. so 776 00:30:18,496 --> 00:30:20,864 political dynamic. It all. so in the US, you know who would 777 00:30:20,864 --> 00:30:23,664 in the US, you know who would defend uh you know, Police are 778 00:30:23,664 --> 00:30:25,463 defend uh you know, Police are US new market uh new modern 779 00:30:25,463 --> 00:30:29,364 US new market uh new modern monetary theory it’s coming to 780 00:30:29,364 --> 00:30:30,963 monetary theory it’s coming to Europe uh and I’m really afraid 781 00:30:30,963 --> 00:30:34,463 Europe uh and I’m really afraid of that right um well, modern 782 00:30:34,463 --> 00:30:36,831 of that right um well, modern monitored theory um which I 783 00:30:36,831 --> 00:30:37,664 monitored theory um which I guess can be unfairly 784 00:30:37,664 --> 00:30:39,430 guess can be unfairly summarize. That’s if you as a 785 00:30:39,430 --> 00:30:41,097 summarize. That’s if you as a public that doesn’t count as 786 00:30:41,097 --> 00:30:42,664 public that doesn’t count as some things that uh is a US the 787 00:30:42,664 --> 00:30:46,830 some things that uh is a US the debate right now right um so. 788 00:30:46,830 --> 00:30:48,998 debate right now right um so. Connected with this question of 789 00:30:48,998 --> 00:30:50,396 Connected with this question of the pace going back to 790 00:30:50,396 --> 00:30:51,197 the pace going back to normality, even though we’re 791 00:30:51,197 --> 00:30:53,531 normality, even though we’re very far from no money right 792 00:30:53,531 --> 00:30:57,130 very far from no money right now, um I have a question on 793 00:30:57,130 --> 00:30:58,831 now, um I have a question on the slide off from uh hero Hiya 794 00:30:58,831 --> 00:31:01,063 the slide off from uh hero Hiya Saki on the implementation of 795 00:31:01,063 --> 00:31:03,130 Saki on the implementation of the final part of the battle uh 796 00:31:03,130 --> 00:31:04,964 the final part of the battle uh with some uh banks is called 797 00:31:04,964 --> 00:31:06,964 with some uh banks is called basal four. Uh I don’t know for 798 00:31:06,964 --> 00:31:08,830 basal four. Uh I don’t know for whom this question is maybe for 799 00:31:08,830 --> 00:31:11,031 whom this question is maybe for been a while for um for you 800 00:31:11,031 --> 00:31:15,898 been a while for um for you here again but um what it is. 801 00:31:15,898 --> 00:31:18,631 here again but um what it is. Actually, for my um how how you 802 00:31:18,631 --> 00:31:20,297 Actually, for my um how how you give it to later thinking on 803 00:31:20,297 --> 00:31:20,931 give it to later thinking on this right because the 804 00:31:20,931 --> 00:31:22,430 this right because the commission has to propose 805 00:31:22,430 --> 00:31:24,031 commission has to propose legislation to implement a 806 00:31:24,031 --> 00:31:26,863 legislation to implement a major package of reforms uh 807 00:31:26,863 --> 00:31:27,930 major package of reforms uh from the previous form of 808 00:31:27,930 --> 00:31:30,997 from the previous form of crisis uh and uh how uh how did 809 00:31:30,997 --> 00:31:32,697 crisis uh and uh how uh how did the Cove nineteen prices affect 810 00:31:32,697 --> 00:31:34,996 the Cove nineteen prices affect your thinking on this? yes the 811 00:31:34,996 --> 00:31:37,464 your thinking on this? yes the uh as you know the buzz of the 812 00:31:37,464 --> 00:31:39,897 uh as you know the buzz of the committee uh decided to 813 00:31:39,897 --> 00:31:42,863 committee uh decided to postpone uh application of the 814 00:31:42,863 --> 00:31:45,197 postpone uh application of the uh full Basel three package by 815 00:31:45,197 --> 00:31:48,330 uh full Basel three package by 1 year uh given uh. The 816 00:31:48,330 --> 00:31:51,631 1 year uh given uh. The covid-nineteen situation um so 817 00:31:51,631 --> 00:31:53,197 covid-nineteen situation um so this gives the commission a 818 00:31:53,197 --> 00:31:55,164 this gives the commission a little bit more time to uh to 819 00:31:55,164 --> 00:31:56,930 little bit more time to uh to prepare. it’s uh it’s 820 00:31:56,930 --> 00:31:58,964 prepare. it’s uh it’s legislative proposal, which we 821 00:31:58,964 --> 00:32:00,830 legislative proposal, which we plan to uh to table uh in the 822 00:32:00,830 --> 00:32:06,997 plan to uh to table uh in the first half of uh of next year 823 00:32:06,997 --> 00:32:07,797 first half of uh of next year um within uh within the basal 824 00:32:07,797 --> 00:32:09,830 um within uh within the basal committee, I think uh within 825 00:32:09,830 --> 00:32:11,431 committee, I think uh within the jurisdictions of view is 826 00:32:11,431 --> 00:32:15,064 the jurisdictions of view is very much that uh what was 827 00:32:15,064 --> 00:32:18,497 very much that uh what was decided in terms of uh the the. 828 00:32:18,497 --> 00:32:20,864 decided in terms of uh the the. The final buzzer free package 829 00:32:20,864 --> 00:32:22,964 The final buzzer free package uh still makes eminent sense 830 00:32:22,964 --> 00:32:26,398 uh still makes eminent sense and that uh we should not uh 831 00:32:26,398 --> 00:32:28,263 and that uh we should not uh use the crisis in order to 832 00:32:28,263 --> 00:32:29,431 use the crisis in order to undertake what uh what had been 833 00:32:29,431 --> 00:32:31,164 undertake what uh what had been agreed because the principles 834 00:32:31,164 --> 00:32:33,163 agreed because the principles and the fundamentals of the 835 00:32:33,163 --> 00:32:35,164 and the fundamentals of the reform are right, but we have 836 00:32:35,164 --> 00:32:39,097 reform are right, but we have to uh really pay attention to 837 00:32:39,097 --> 00:32:41,530 to uh really pay attention to the you know facing of the 838 00:32:41,530 --> 00:32:42,831 the you know facing of the reform and we have to uh to 839 00:32:42,831 --> 00:32:45,630 reform and we have to uh to make sure that uh the new rules 840 00:32:45,630 --> 00:32:49,030 make sure that uh the new rules kick in uh at a time where 841 00:32:49,030 --> 00:32:50,664 kick in uh at a time where there is no risk of aggravating 842 00:32:50,664 --> 00:32:55,431 there is no risk of aggravating the. And uh uh uh uh 843 00:32:55,431 --> 00:32:57,896 the. And uh uh uh uh introducing a more leveraging 844 00:32:57,896 --> 00:32:59,164 introducing a more leveraging so the decision has been 845 00:32:59,164 --> 00:33:04,431 so the decision has been postponed by 1 year um and so 846 00:33:04,431 --> 00:33:06,830 postponed by 1 year um and so this is taking place and uh 847 00:33:06,830 --> 00:33:08,763 this is taking place and uh normally uh uh negotiations in 848 00:33:08,763 --> 00:33:11,097 normally uh uh negotiations in the you should start uh in I 849 00:33:11,097 --> 00:33:12,430 the you should start uh in I would say the second quarter of 850 00:33:12,430 --> 00:33:14,930 would say the second quarter of uh of next year on the EU 851 00:33:14,930 --> 00:33:16,997 uh of next year on the EU position of the uh the final 852 00:33:16,997 --> 00:33:19,697 position of the uh the final Basel three standards. Oh thank 853 00:33:19,697 --> 00:33:22,664 Basel three standards. Oh thank you that was very specific um 854 00:33:22,664 --> 00:33:26,064 you that was very specific um Alex. I have a bunch of 855 00:33:26,064 --> 00:33:27,598 Alex. I have a bunch of questions about banking market 856 00:33:27,598 --> 00:33:29,964 questions about banking market structure and maybe AQ and also 857 00:33:29,964 --> 00:33:32,398 structure and maybe AQ and also uh alien to comment on this and 858 00:33:32,398 --> 00:33:34,231 uh alien to comment on this and they follow other panels want 859 00:33:34,231 --> 00:33:36,597 they follow other panels want to jump in as they should um 860 00:33:36,597 --> 00:33:39,497 to jump in as they should um but no um Jack Schecter asks 861 00:33:39,497 --> 00:33:45,197 but no um Jack Schecter asks two questions uh on do one is 862 00:33:45,197 --> 00:33:46,997 two questions uh on do one is isn’t this whole shock of 863 00:33:46,997 --> 00:33:48,397 isn’t this whole shock of nineteen in a way an 864 00:33:48,397 --> 00:33:50,030 nineteen in a way an opportunity to accelerate what 865 00:33:50,030 --> 00:33:51,931 opportunity to accelerate what everybody kind of rely agrees 866 00:33:51,931 --> 00:33:53,131 everybody kind of rely agrees is needed, which is you know uh 867 00:33:53,131 --> 00:33:55,863 is needed, which is you know uh a consolidation of the European 868 00:33:55,863 --> 00:33:57,130 a consolidation of the European banking market, especially to 869 00:33:57,130 --> 00:34:00,398 banking market, especially to yours from uh of some. On the 870 00:34:00,398 --> 00:34:01,163 yours from uh of some. On the market because we know there 871 00:34:01,163 --> 00:34:03,130 market because we know there are too many banks uh and they 872 00:34:03,130 --> 00:34:05,964 are too many banks uh and they are not viable um and uh and 873 00:34:05,964 --> 00:34:08,964 are not viable um and uh and and so that you as policy by 874 00:34:08,964 --> 00:34:11,163 and so that you as policy by policy makers as an 875 00:34:11,163 --> 00:34:12,730 policy makers as an opportunity. uh how do you look 876 00:34:12,730 --> 00:34:14,597 opportunity. uh how do you look you look at it as somebody who 877 00:34:14,597 --> 00:34:17,897 you look at it as somebody who looks at the markets um asks 878 00:34:17,897 --> 00:34:20,330 looks at the markets um asks about. you know there have been 879 00:34:20,330 --> 00:34:21,998 about. you know there have been recurring press articles about 880 00:34:21,998 --> 00:34:24,730 recurring press articles about uh a bad bank or ECB lobbying 881 00:34:24,730 --> 00:34:27,730 uh a bad bank or ECB lobbying for bank, maybe um that’s a 882 00:34:27,730 --> 00:34:30,097 for bank, maybe um that’s a rumored uh on the. Recurring 883 00:34:30,097 --> 00:34:32,464 rumored uh on the. Recurring basis uh so basically this 884 00:34:32,464 --> 00:34:33,898 basis uh so basically this whole question of the 885 00:34:33,898 --> 00:34:34,863 whole question of the restructuring of the banking 886 00:34:34,863 --> 00:34:37,164 restructuring of the banking systems the uh bringing it back 887 00:34:37,164 --> 00:34:39,697 systems the uh bringing it back to a founder structure and not 888 00:34:39,697 --> 00:34:40,697 to a founder structure and not just in terms of capital, but 889 00:34:40,697 --> 00:34:43,463 just in terms of capital, but also in terms of the viability 890 00:34:43,463 --> 00:34:46,064 also in terms of the viability of a business, not just at the 891 00:34:46,064 --> 00:34:47,564 of a business, not just at the level of individual but also at 892 00:34:47,564 --> 00:34:49,397 level of individual but also at the level of the sex. so sorry, 893 00:34:49,397 --> 00:34:50,763 the level of the sex. so sorry, my question is far too long, 894 00:34:50,763 --> 00:34:52,797 my question is far too long, but uh but how to how do you? 895 00:34:52,797 --> 00:34:54,364 but uh but how to how do you? how do you look at these 896 00:34:54,364 --> 00:34:56,398 how do you look at these issues? How do we see 897 00:34:56,398 --> 00:34:57,197 issues? How do we see opportunities in the current 898 00:34:57,197 --> 00:34:59,064 opportunities in the current moment for policy makers and 899 00:34:59,064 --> 00:35:02,330 moment for policy makers and for um entrepreneurial bank? Uh 900 00:35:02,330 --> 00:35:03,964 for um entrepreneurial bank? Uh and uh how does it affect your 901 00:35:03,964 --> 00:35:05,397 and uh how does it affect your thinking on the banking 902 00:35:05,397 --> 00:35:09,164 thinking on the banking industry? Yes, um yeah, that 903 00:35:09,164 --> 00:35:10,930 industry? Yes, um yeah, that that’s uh that that’s a very 904 00:35:10,930 --> 00:35:12,130 that’s uh that that’s a very good question if I may and you 905 00:35:12,130 --> 00:35:14,996 good question if I may and you just uh one one quick minute on 906 00:35:14,996 --> 00:35:17,030 just uh one one quick minute on the on the previous panel and I 907 00:35:17,030 --> 00:35:19,031 the on the previous panel and I get to that. I saw that the 908 00:35:19,031 --> 00:35:21,130 get to that. I saw that the really is a discussion on uh on 909 00:35:21,130 --> 00:35:23,896 really is a discussion on uh on the page of page of the phase 910 00:35:23,896 --> 00:35:25,131 the page of page of the phase out of this extraordinary 911 00:35:25,131 --> 00:35:28,964 out of this extraordinary support is uh is is really 912 00:35:28,964 --> 00:35:30,664 support is uh is is really critical and it’s really a very 913 00:35:30,664 --> 00:35:32,897 critical and it’s really a very delicate balance here between 914 00:35:32,897 --> 00:35:33,731 delicate balance here between preserving the social and 915 00:35:33,731 --> 00:35:35,164 preserving the social and economic fabric by not going 916 00:35:35,164 --> 00:35:38,597 economic fabric by not going to. But that the same time as 917 00:35:38,597 --> 00:35:40,330 to. But that the same time as well looking back to the first 918 00:35:40,330 --> 00:35:43,564 well looking back to the first question, no on digital um 919 00:35:43,564 --> 00:35:45,664 question, no on digital um investment on investment, it is 920 00:35:45,664 --> 00:35:47,631 investment on investment, it is really very important if we 921 00:35:47,631 --> 00:35:48,898 really very important if we want to sustain this higher 922 00:35:48,898 --> 00:35:50,431 want to sustain this higher leverage in the economies that 923 00:35:50,431 --> 00:35:53,131 leverage in the economies that we build uh a sustainable 924 00:35:53,131 --> 00:35:54,330 we build uh a sustainable growth so that we keep 925 00:35:54,330 --> 00:35:55,630 growth so that we keep productive companies so just 926 00:35:55,630 --> 00:35:57,463 productive companies so just wanted to put that on the table 927 00:35:57,463 --> 00:35:59,398 wanted to put that on the table and uh and with uh maybe come 928 00:35:59,398 --> 00:36:00,964 and uh and with uh maybe come back on it later but to your 929 00:36:00,964 --> 00:36:03,996 back on it later but to your point that indeed um that 930 00:36:03,996 --> 00:36:07,764 point that indeed um that that’s one of the the specifics 931 00:36:07,764 --> 00:36:09,764 that’s one of the the specifics of uh a banking here in Europe, 932 00:36:09,764 --> 00:36:12,030 of uh a banking here in Europe, maybe. Especially compared to 933 00:36:12,030 --> 00:36:14,130 maybe. Especially compared to the other regions is that they 934 00:36:14,130 --> 00:36:17,031 the other regions is that they are uh some structural um uh 935 00:36:17,031 --> 00:36:19,597 are uh some structural um uh low profitability compared to 936 00:36:19,597 --> 00:36:22,463 low profitability compared to other region and there might be 937 00:36:22,463 --> 00:36:26,396 other region and there might be here uh and an opportunity uh 938 00:36:26,396 --> 00:36:28,363 here uh and an opportunity uh through through this crisis to 939 00:36:28,363 --> 00:36:31,430 through through this crisis to push towards uh more uh 940 00:36:31,430 --> 00:36:33,131 push towards uh more uh consolidation uh in uh in in 941 00:36:33,131 --> 00:36:35,763 consolidation uh in uh in in the sector so that’s uh to 942 00:36:35,763 --> 00:36:37,763 the sector so that’s uh to support that was mentioning at 943 00:36:37,763 --> 00:36:40,830 support that was mentioning at the beginning. Can we take the? 944 00:36:40,830 --> 00:36:43,997 the beginning. Can we take the? OF of this crisis, maybe to 945 00:36:43,997 --> 00:36:46,797 OF of this crisis, maybe to reset uh for for a stronger 946 00:36:46,797 --> 00:36:51,497 reset uh for for a stronger Europe and stronger. 947 00:36:52,463 --> 00:36:53,464 Um that’s a very general answer 948 00:36:53,464 --> 00:36:55,530 Um that’s a very general answer to my question. uh how uh I 949 00:36:55,530 --> 00:36:56,463 to my question. uh how uh I mean you mentioned 950 00:36:56,463 --> 00:36:57,964 mean you mentioned profitability. but how do you? 951 00:36:57,964 --> 00:36:59,731 profitability. but how do you? how should we think of uh you 952 00:36:59,731 --> 00:37:01,497 how should we think of uh you know we ordering the market? 953 00:37:01,497 --> 00:37:03,596 know we ordering the market? not in not just as I mentioned 954 00:37:03,596 --> 00:37:05,330 not in not just as I mentioned your your your uh you’re a 955 00:37:05,330 --> 00:37:06,964 your your your uh you’re a board member at your credit. so 956 00:37:06,964 --> 00:37:07,564 board member at your credit. so I’m not going to ask you what’s 957 00:37:07,564 --> 00:37:08,930 I’m not going to ask you what’s the strategy there will be, but 958 00:37:08,930 --> 00:37:10,963 the strategy there will be, but if you look at it from a post 959 00:37:10,963 --> 00:37:13,130 if you look at it from a post maker’s perspective to policy 960 00:37:13,130 --> 00:37:15,464 maker’s perspective to policy makers uh take active measures 961 00:37:15,464 --> 00:37:17,063 makers uh take active measures uh in uh in the direction you 962 00:37:17,063 --> 00:37:18,131 uh in uh in the direction you mentioned re capitalization. 963 00:37:18,131 --> 00:37:19,664 mentioned re capitalization. How do you think about the bad 964 00:37:19,664 --> 00:37:23,463 How do you think about the bad bank concept and uh and How 965 00:37:23,463 --> 00:37:25,631 bank concept and uh and How assertive this stands in terms 966 00:37:25,631 --> 00:37:27,897 assertive this stands in terms of market structure, so let me 967 00:37:27,897 --> 00:37:29,464 of market structure, so let me let me start the first from the 968 00:37:29,464 --> 00:37:30,397 let me start the first from the consolidation issue. Let me 969 00:37:30,397 --> 00:37:31,630 consolidation issue. Let me start making a general 970 00:37:31,630 --> 00:37:33,831 start making a general statement. So since I joined 971 00:37:33,831 --> 00:37:34,996 statement. So since I joined the board, the clear that I 972 00:37:34,996 --> 00:37:37,063 the board, the clear that I realized that policy making is 973 00:37:37,063 --> 00:37:39,097 realized that policy making is one thing that affects a lot, 974 00:37:39,097 --> 00:37:40,364 one thing that affects a lot, but the other agent that 975 00:37:40,364 --> 00:37:41,964 but the other agent that affects the banks in particular 976 00:37:41,964 --> 00:37:44,464 affects the banks in particular the public is is the market. So 977 00:37:44,464 --> 00:37:46,031 the public is is the market. So why do I say that because many 978 00:37:46,031 --> 00:37:48,297 why do I say that because many things that the police may be 979 00:37:48,297 --> 00:37:49,663 things that the police may be doing at the end of the day, 980 00:37:49,663 --> 00:37:50,397 doing at the end of the day, they’re not kicked up by 981 00:37:50,397 --> 00:37:51,764 they’re not kicked up by anything. it’s simply because 982 00:37:51,764 --> 00:37:52,664 anything. it’s simply because the markets don’t follow the 983 00:37:52,664 --> 00:37:54,931 the markets don’t follow the policy making so think about. 984 00:37:54,931 --> 00:37:58,430 policy making so think about. All of the flexibility that it 985 00:37:58,430 --> 00:38:00,097 All of the flexibility that it has given to banks to decrease 986 00:38:00,097 --> 00:38:03,097 has given to banks to decrease or to use the back of capitals 987 00:38:03,097 --> 00:38:03,996 or to use the back of capitals times. we haven’t seen the 988 00:38:03,996 --> 00:38:05,497 times. we haven’t seen the match of use of this capital 989 00:38:05,497 --> 00:38:07,163 match of use of this capital bass, and the reason is that 990 00:38:07,163 --> 00:38:08,530 bass, and the reason is that banks are concerned that the 991 00:38:08,530 --> 00:38:10,930 banks are concerned that the markets may not like it if they 992 00:38:10,930 --> 00:38:12,663 markets may not like it if they use this backwards. So this why 993 00:38:12,663 --> 00:38:15,097 use this backwards. So this why is it related to a 994 00:38:15,097 --> 00:38:16,263 is it related to a consolidation because if you 995 00:38:16,263 --> 00:38:18,497 consolidation because if you had asked and if you had to 996 00:38:18,497 --> 00:38:22,463 had asked and if you had to invest on Saturday before the 997 00:38:22,463 --> 00:38:24,097 invest on Saturday before the investors do not like the idea 998 00:38:24,097 --> 00:38:25,430 investors do not like the idea of consolidation in the bank 999 00:38:25,430 --> 00:38:26,764 of consolidation in the bank inside so they were very 1000 00:38:26,764 --> 00:38:27,930 inside so they were very negative about it. And this is 1001 00:38:27,930 --> 00:38:30,597 negative about it. And this is also why. Have not consolidated 1002 00:38:30,597 --> 00:38:32,330 also why. Have not consolidated did not in the last week in 1003 00:38:32,330 --> 00:38:34,530 did not in the last week in particular across border Now, 1004 00:38:34,530 --> 00:38:35,797 particular across border Now, investors are more positive 1005 00:38:35,797 --> 00:38:37,964 investors are more positive towards consolidation and 1006 00:38:37,964 --> 00:38:39,564 towards consolidation and you’ll see and we have seen the 1007 00:38:39,564 --> 00:38:41,164 you’ll see and we have seen the first signs of consolidation 1008 00:38:41,164 --> 00:38:43,464 first signs of consolidation for example, Italy has just 1009 00:38:43,464 --> 00:38:46,064 for example, Italy has just acquired the Obi Bank for in 1010 00:38:46,064 --> 00:38:48,398 acquired the Obi Bank for in the second largest bank in the 1011 00:38:48,398 --> 00:38:49,931 the second largest bank in the world so that what type of 1012 00:38:49,931 --> 00:38:51,631 world so that what type of consideration we’re going to 1013 00:38:51,631 --> 00:38:53,164 consideration we’re going to see going forward is important. 1014 00:38:53,164 --> 00:38:56,398 see going forward is important. So I think policy makers would 1015 00:38:56,398 --> 00:38:57,997 So I think policy makers would prefer Crossbow America, 1016 00:38:57,997 --> 00:38:59,131 prefer Crossbow America, although maybe they don’t 1017 00:38:59,131 --> 00:39:01,764 although maybe they don’t officially or very. Say that 1018 00:39:01,764 --> 00:39:02,863 officially or very. Say that because they also afraid about 1019 00:39:02,863 --> 00:39:05,597 because they also afraid about the fragmentation and so 1020 00:39:05,597 --> 00:39:08,396 the fragmentation and so investors may prefer domestic 1021 00:39:08,396 --> 00:39:09,464 investors may prefer domestic consolidation because it’s 1022 00:39:09,464 --> 00:39:11,864 consolidation because it’s easier to achieve economies of 1023 00:39:11,864 --> 00:39:13,997 easier to achieve economies of scale increase profitability 1024 00:39:13,997 --> 00:39:16,130 scale increase profitability and end up for the images so if 1025 00:39:16,130 --> 00:39:17,931 and end up for the images so if I had to make a guess I would 1026 00:39:17,931 --> 00:39:19,330 I had to make a guess I would imagine and this is not to do 1027 00:39:19,330 --> 00:39:21,398 imagine and this is not to do the credit of course that we 1028 00:39:21,398 --> 00:39:22,264 the credit of course that we are going to see consolidation 1029 00:39:22,264 --> 00:39:26,097 are going to see consolidation going forward what we may see 1030 00:39:26,097 --> 00:39:27,964 going forward what we may see more domestic consolidation 1031 00:39:27,964 --> 00:39:29,464 more domestic consolidation rather than cross that 1032 00:39:29,464 --> 00:39:30,431 rather than cross that consolidation because at the 1033 00:39:30,431 --> 00:39:31,664 consolidation because at the end of the day, this is what in 1034 00:39:31,664 --> 00:39:35,064 end of the day, this is what in the short. 1035 00:40:03,031 --> 00:40:04,997 Exogenous and all the companies 1036 00:40:04,997 --> 00:40:08,530 Exogenous and all the companies that were uh solvent before the 1037 00:40:08,530 --> 00:40:10,930 that were uh solvent before the crisis receive some form of 1038 00:40:10,930 --> 00:40:12,064 crisis receive some form of support and I think that this 1039 00:40:12,064 --> 00:40:13,497 support and I think that this was the right thing the right 1040 00:40:13,497 --> 00:40:14,496 was the right thing the right approach at the beginning of 1041 00:40:14,496 --> 00:40:17,398 approach at the beginning of the crisis, but as we go in the 1042 00:40:17,398 --> 00:40:18,998 the crisis, but as we go in the crisis we should switch from 1043 00:40:18,998 --> 00:40:22,664 crisis we should switch from the generalized support to more 1044 00:40:22,664 --> 00:40:23,296 the generalized support to more specific but the same in I hold 1045 00:40:23,296 --> 00:40:25,697 specific but the same in I hold for banks so banks are entering 1046 00:40:25,697 --> 00:40:27,030 for banks so banks are entering this crisis that clean up a lot 1047 00:40:27,030 --> 00:40:28,431 this crisis that clean up a lot of their balance sheet, but 1048 00:40:28,431 --> 00:40:29,731 of their balance sheet, but they’re also subject to big 1049 00:40:29,731 --> 00:40:32,031 they’re also subject to big exogenous shock so I think I’m 1050 00:40:32,031 --> 00:40:33,630 exogenous shock so I think I’m in favor of the bed for that 1051 00:40:33,630 --> 00:40:35,831 in favor of the bed for that reason because I mean in a way 1052 00:40:35,831 --> 00:40:36,597 reason because I mean in a way we need some help for them 1053 00:40:36,597 --> 00:40:39,131 we need some help for them before you buy Bank is. Two 1054 00:40:39,131 --> 00:40:41,797 before you buy Bank is. Two subjects to bank No is that an 1055 00:40:41,797 --> 00:40:43,197 subjects to bank No is that an anonymous because it depends on 1056 00:40:43,197 --> 00:40:45,797 anonymous because it depends on the transfer so it depends on 1057 00:40:45,797 --> 00:40:46,730 the transfer so it depends on how you set it up and what 1058 00:40:46,730 --> 00:40:47,531 how you set it up and what would eventually be the trans 1059 00:40:47,531 --> 00:40:49,896 would eventually be the trans right. so it’s not absolutely 1060 00:40:49,896 --> 00:40:53,731 right. so it’s not absolutely not sad that uh okay. Uh I have 1061 00:40:53,731 --> 00:40:56,664 not sad that uh okay. Uh I have a question of clarification to 1062 00:40:56,664 --> 00:40:58,397 a question of clarification to um to Alexandria uh before I 1063 00:40:58,397 --> 00:41:00,664 um to Alexandria uh before I give the floor to be uh Julia 1064 00:41:00,664 --> 00:41:02,197 give the floor to be uh Julia is asking Where’s the negatives 1065 00:41:02,197 --> 00:41:03,397 is asking Where’s the negatives that you mentioned at the 1066 00:41:03,397 --> 00:41:05,864 that you mentioned at the beginning on the many credit 1067 00:41:05,864 --> 00:41:07,564 beginning on the many credit ratings, our concentrated with 1068 00:41:07,564 --> 00:41:09,597 ratings, our concentrated with specific countries in Europe or 1069 00:41:09,597 --> 00:41:10,831 specific countries in Europe or or is there kind of a 1070 00:41:10,831 --> 00:41:11,931 or is there kind of a broad-based a phenomenon and 1071 00:41:11,931 --> 00:41:17,897 broad-based a phenomenon and you have to set? Alexandra 1072 00:41:19,463 --> 00:41:22,197 Yes, so uh I can uh can get the 1073 00:41:22,197 --> 00:41:25,164 Yes, so uh I can uh can get the statistic. it’s it’s uh spread 1074 00:41:25,164 --> 00:41:27,597 statistic. it’s it’s uh spread around the a number of 1075 00:41:27,597 --> 00:41:28,531 around the a number of countries. there’s a quite a 1076 00:41:28,531 --> 00:41:30,597 countries. there’s a quite a lot of that uh in uh of the 1077 00:41:30,597 --> 00:41:33,930 lot of that uh in uh of the negative outlooks in the UK uh 1078 00:41:33,930 --> 00:41:36,997 negative outlooks in the UK uh but we also have a negative out 1079 00:41:36,997 --> 00:41:39,964 but we also have a negative out hoops um get here in a number 1080 00:41:39,964 --> 00:41:42,497 hoops um get here in a number of countries where you have 1081 00:41:42,497 --> 00:41:47,163 of countries where you have more exposure to um uh of of 1082 00:41:47,163 --> 00:41:49,863 more exposure to um uh of of the economy. To the show, so we 1083 00:41:49,863 --> 00:41:53,930 the economy. To the show, so we have um uh here in the UK we 1084 00:41:53,930 --> 00:41:56,398 have um uh here in the UK we have on Barclays uh but it’s 1085 00:41:56,398 --> 00:41:57,531 have on Barclays uh but it’s really across a number of 1086 00:41:57,531 --> 00:41:58,930 really across a number of geography. It’s not 1087 00:41:58,930 --> 00:42:00,064 geography. It’s not concentrated in a single good 1088 00:42:00,064 --> 00:42:01,496 concentrated in a single good country. We have in Spain in 1089 00:42:01,496 --> 00:42:03,896 country. We have in Spain in Germany in France, so it’s more 1090 00:42:03,896 --> 00:42:06,097 Germany in France, so it’s more January 20. It’s 40% of the 1091 00:42:06,097 --> 00:42:08,830 January 20. It’s 40% of the European born free II suspect 1092 00:42:08,830 --> 00:42:10,998 European born free II suspect uh it’s the question behind the 1093 00:42:10,998 --> 00:42:12,297 uh it’s the question behind the question was is it a matter of 1094 00:42:12,297 --> 00:42:14,064 question was is it a matter of sales versus nos and your 1095 00:42:14,064 --> 00:42:14,964 sales versus nos and your answer is no. It’s not really 1096 00:42:14,964 --> 00:42:19,097 answer is no. It’s not really that it’s broader. Yes. Okay. 1097 00:42:19,097 --> 00:42:20,364 that it’s broader. Yes. Okay. Um you’ve been at the center of 1098 00:42:20,364 --> 00:42:21,763 Um you’ve been at the center of the creation of the banking 1099 00:42:21,763 --> 00:42:22,896 the creation of the banking Union and you played an 1100 00:42:22,896 --> 00:42:23,797 Union and you played an instrumental role in this. how 1101 00:42:23,797 --> 00:42:26,130 instrumental role in this. how do you look at it? uh now that 1102 00:42:26,130 --> 00:42:29,931 do you look at it? uh now that you’re outside it look. I’m not 1103 00:42:29,931 --> 00:42:31,164 you’re outside it look. I’m not going to say anything specific 1104 00:42:31,164 --> 00:42:33,964 going to say anything specific on European or European uh 1105 00:42:33,964 --> 00:42:35,663 on European or European uh European regulation because I’m 1106 00:42:35,663 --> 00:42:37,663 European regulation because I’m not in a good place to do that, 1107 00:42:37,663 --> 00:42:39,197 not in a good place to do that, but uh with with hindsight, I 1108 00:42:39,197 --> 00:42:41,464 but uh with with hindsight, I mean if you if you contrast the 1109 00:42:41,464 --> 00:42:42,131 mean if you if you contrast the situation today and the 1110 00:42:42,131 --> 00:42:43,431 situation today and the situation before it could be 1111 00:42:43,431 --> 00:42:47,163 situation before it could be nineteen uh crisis I mean the 1112 00:42:47,163 --> 00:42:49,531 nineteen uh crisis I mean the um. Of the European actions 1113 00:42:49,531 --> 00:42:50,763 um. Of the European actions towards bones and European 1114 00:42:50,763 --> 00:42:51,896 towards bones and European strategy and approach has been 1115 00:42:51,896 --> 00:42:53,430 strategy and approach has been predicated on the assumption 1116 00:42:53,430 --> 00:42:55,797 predicated on the assumption that there would be a steady 1117 00:42:55,797 --> 00:42:57,730 that there would be a steady return to growth and that bonds 1118 00:42:57,730 --> 00:43:01,530 return to growth and that bonds with a time to uh tidy up the 1119 00:43:01,530 --> 00:43:03,763 with a time to uh tidy up the balance sheets and fig problems 1120 00:43:03,763 --> 00:43:05,197 balance sheets and fig problems right well, at least at least, 1121 00:43:05,197 --> 00:43:06,330 right well, at least at least, let’s say a few years I’ve been 1122 00:43:06,330 --> 00:43:07,964 let’s say a few years I’ve been about slowly understanding the 1123 00:43:07,964 --> 00:43:09,497 about slowly understanding the issues and waking up to issues 1124 00:43:09,497 --> 00:43:11,563 issues and waking up to issues and then once they were 1125 00:43:11,563 --> 00:43:13,030 and then once they were understood the strategy that 1126 00:43:13,030 --> 00:43:14,431 understood the strategy that came out of this was uh let’s 1127 00:43:14,431 --> 00:43:16,263 came out of this was uh let’s give them time right and that 1128 00:43:16,263 --> 00:43:18,998 give them time right and that made a lot of sense provided. 1129 00:43:18,998 --> 00:43:21,531 made a lot of sense provided. Would have this prospect of 1130 00:43:21,531 --> 00:43:22,963 Would have this prospect of returning to no growth that is 1131 00:43:22,963 --> 00:43:24,463 returning to no growth that is to have some kind of a 1132 00:43:24,463 --> 00:43:26,364 to have some kind of a beautiful that us as people 1133 00:43:26,364 --> 00:43:29,531 beautiful that us as people call it? Um that’s a gun that 1134 00:43:29,531 --> 00:43:30,896 call it? Um that’s a gun that environment is gone right. Uh 1135 00:43:30,896 --> 00:43:32,030 environment is gone right. Uh there is a there’s a huge 1136 00:43:32,030 --> 00:43:34,563 there is a there’s a huge uncertainty uh there is no 1137 00:43:34,563 --> 00:43:36,097 uncertainty uh there is no guarantee today that no rules 1138 00:43:36,097 --> 00:43:37,530 guarantee today that no rules would come back. Also inflation 1139 00:43:37,530 --> 00:43:38,763 would come back. Also inflation is uh is is extremely low, 1140 00:43:38,763 --> 00:43:42,430 is uh is is extremely low, which doesn’t help um plus uh 1141 00:43:42,430 --> 00:43:44,230 which doesn’t help um plus uh as as I already said we see an 1142 00:43:44,230 --> 00:43:46,564 as as I already said we see an acceleration of digital 1143 00:43:46,564 --> 00:43:47,263 acceleration of digital transformation, which is in 1144 00:43:47,263 --> 00:43:48,597 transformation, which is in itself an additional challenge 1145 00:43:48,597 --> 00:43:49,363 itself an additional challenge to bounce right, which were 1146 00:43:49,363 --> 00:43:51,464 to bounce right, which were there before the. But you know, 1147 00:43:51,464 --> 00:43:52,463 there before the. But you know, it’s it’s it’s being stepped up 1148 00:43:52,463 --> 00:43:54,331 it’s it’s it’s being stepped up right there. That’s a challenge 1149 00:43:54,331 --> 00:43:56,364 right there. That’s a challenge um and if there’s anything we 1150 00:43:56,364 --> 00:43:57,164 um and if there’s anything we learned from the great 1151 00:43:57,164 --> 00:43:58,496 learned from the great financial priorities is that it 1152 00:43:58,496 --> 00:43:59,963 financial priorities is that it doesn’t serve any purposes to 1153 00:43:59,963 --> 00:44:00,964 doesn’t serve any purposes to leave the banking sector uh in 1154 00:44:00,964 --> 00:44:03,464 leave the banking sector uh in a cloud of uncertainty when you 1155 00:44:03,464 --> 00:44:04,197 a cloud of uncertainty when you have to uh to go out to the 1156 00:44:04,197 --> 00:44:07,397 have to uh to go out to the crisis right so the kind of 1157 00:44:07,397 --> 00:44:07,997 crisis right so the kind of strategy which implies for 1158 00:44:07,997 --> 00:44:10,163 strategy which implies for veterans and giving a lot of 1159 00:44:10,163 --> 00:44:11,597 veterans and giving a lot of time that might have been a 1160 00:44:11,597 --> 00:44:12,897 time that might have been a rights uh before the crisis uh 1161 00:44:12,897 --> 00:44:16,597 rights uh before the crisis uh but uh that we have to change. 1162 00:44:16,597 --> 00:44:18,431 but uh that we have to change. So that can have a pretty 1163 00:44:18,431 --> 00:44:20,197 So that can have a pretty radical consequences been well. 1164 00:44:20,197 --> 00:44:22,131 radical consequences been well. So are you are you advocating 1165 00:44:22,131 --> 00:44:24,897 So are you are you advocating uh that uh there should be a 1166 00:44:24,897 --> 00:44:26,031 uh that uh there should be a tough love approach right now 1167 00:44:26,031 --> 00:44:28,097 tough love approach right now that there should be triage of 1168 00:44:28,097 --> 00:44:30,964 that there should be triage of the banks uh that um uh 1169 00:44:30,964 --> 00:44:33,597 the banks uh that um uh essentially uh makers should 1170 00:44:33,597 --> 00:44:34,897 essentially uh makers should kind of take control our power 1171 00:44:34,897 --> 00:44:37,998 kind of take control our power or or or do I read incorrectly 1172 00:44:37,998 --> 00:44:39,930 or or or do I read incorrectly So I’m I’m I’m not. I’m not. 1173 00:44:39,930 --> 00:44:41,430 So I’m I’m I’m not. I’m not. I’m not saying that I’m saying 1174 00:44:41,430 --> 00:44:42,464 I’m not saying that I’m saying that policy makers should know 1175 00:44:42,464 --> 00:44:44,064 that policy makers should know where they want to go. That is 1176 00:44:44,064 --> 00:44:45,664 where they want to go. That is that is and that’s the role of 1177 00:44:45,664 --> 00:44:46,864 that is and that’s the role of the commission and the ECB, but 1178 00:44:46,864 --> 00:44:48,631 the commission and the ECB, but there should be a clear vision 1179 00:44:48,631 --> 00:44:51,397 there should be a clear vision of uh Where’s Europe. Uh a 1180 00:44:51,397 --> 00:44:53,197 of uh Where’s Europe. Uh a banking system should be in a 1181 00:44:53,197 --> 00:44:54,564 banking system should be in a five to 10 years, so you can 1182 00:44:54,564 --> 00:44:56,831 five to 10 years, so you can you can leave it to go to uh 1183 00:44:56,831 --> 00:44:58,897 you can leave it to go to uh kind of for the slowly and the 1184 00:44:58,897 --> 00:45:01,897 kind of for the slowly and the and the opportunity of of of 1185 00:45:01,897 --> 00:45:03,031 and the opportunity of of of optimistically uh improve their 1186 00:45:03,031 --> 00:45:04,131 optimistically uh improve their balance sheets. That’s not 1187 00:45:04,131 --> 00:45:04,931 balance sheets. That’s not going to work so you need the 1188 00:45:04,931 --> 00:45:06,531 going to work so you need the direction you need to set a 1189 00:45:06,531 --> 00:45:07,697 direction you need to set a direction and then the market 1190 00:45:07,697 --> 00:45:08,897 direction and then the market can do it. so I’m not saying 1191 00:45:08,897 --> 00:45:10,597 can do it. so I’m not saying that there should be uh public 1192 00:45:10,597 --> 00:45:12,964 that there should be uh public uh intrusion into into all 1193 00:45:12,964 --> 00:45:14,396 uh intrusion into into all these decisions right uh but 1194 00:45:14,396 --> 00:45:16,931 these decisions right uh but there has to be a decision uh a 1195 00:45:16,931 --> 00:45:17,730 there has to be a decision uh a direction and by the way that 1196 00:45:17,730 --> 00:45:19,031 direction and by the way that direction has to be consistent 1197 00:45:19,031 --> 00:45:20,897 direction has to be consistent with the general. Make a 1198 00:45:20,897 --> 00:45:23,398 with the general. Make a strategy of as a union as 1199 00:45:23,398 --> 00:45:25,163 strategy of as a union as embodied in the in in recovery 1200 00:45:25,163 --> 00:45:27,531 embodied in the in in recovery plan and a strategy, so it’s it 1201 00:45:27,531 --> 00:45:28,563 plan and a strategy, so it’s it has to be consistent, but there 1202 00:45:28,563 --> 00:45:30,496 has to be consistent, but there is a need to set the direction 1203 00:45:30,496 --> 00:45:32,131 is a need to set the direction here. so sorry to press you but 1204 00:45:32,131 --> 00:45:33,164 here. so sorry to press you but uh but this is really 1205 00:45:33,164 --> 00:45:34,363 uh but this is really interesting when you say state 1206 00:45:34,363 --> 00:45:35,763 interesting when you say state the direction what instruments 1207 00:45:35,763 --> 00:45:36,763 the direction what instruments do you have in mind is that 1208 00:45:36,763 --> 00:45:38,064 do you have in mind is that hiring requirements? is it 1209 00:45:38,064 --> 00:45:40,896 hiring requirements? is it something different? Well, 1210 00:45:40,896 --> 00:45:41,797 something different? Well, that’s I think there has the 1211 00:45:41,797 --> 00:45:43,764 that’s I think there has the there has to be a clear message 1212 00:45:43,764 --> 00:45:45,663 there has to be a clear message to bounce uh that uh the 1213 00:45:45,663 --> 00:45:48,864 to bounce uh that uh the consolidation is uh is welcome 1214 00:45:48,864 --> 00:45:50,496 consolidation is uh is welcome uh and uh there has to be on 1215 00:45:50,496 --> 00:45:51,530 uh and uh there has to be on that has been said by other 1216 00:45:51,530 --> 00:45:52,931 that has been said by other speakers and in particular IP, 1217 00:45:52,931 --> 00:45:55,597 speakers and in particular IP, but then also others there has 1218 00:45:55,597 --> 00:45:57,163 but then also others there has to be an environment that is 1219 00:45:57,163 --> 00:45:59,398 to be an environment that is conducive to that is, which 1220 00:45:59,398 --> 00:46:01,164 conducive to that is, which implies that the uh the uh the 1221 00:46:01,164 --> 00:46:02,497 implies that the uh the uh the last step to the union has to 1222 00:46:02,497 --> 00:46:04,197 last step to the union has to be taken and some of the issues 1223 00:46:04,197 --> 00:46:05,797 be taken and some of the issues that have been left kind of 1224 00:46:05,797 --> 00:46:07,663 that have been left kind of behind the carpets uh last year 1225 00:46:07,663 --> 00:46:08,797 behind the carpets uh last year in the last round of 1226 00:46:08,797 --> 00:46:11,998 in the last round of discussion. Like home host and 1227 00:46:11,998 --> 00:46:13,397 discussion. Like home host and you know all these issues and 1228 00:46:13,397 --> 00:46:14,697 you know all these issues and investment banking versus 1229 00:46:14,697 --> 00:46:16,896 investment banking versus commercial banking etcetera uh 1230 00:46:16,896 --> 00:46:18,597 commercial banking etcetera uh these issues cannot be uh 1231 00:46:18,597 --> 00:46:21,197 these issues cannot be uh cannot be left in the uh uh uh 1232 00:46:21,197 --> 00:46:22,496 cannot be left in the uh uh uh in the dark. I mean you need to 1233 00:46:22,496 --> 00:46:23,896 in the dark. I mean you need to you need to control this and 1234 00:46:23,896 --> 00:46:25,496 you need to control this and set a strategy. so that’s don’t 1235 00:46:25,496 --> 00:46:27,163 set a strategy. so that’s don’t know what they can do what they 1236 00:46:27,163 --> 00:46:29,031 know what they can do what they cannot do and so that market is 1237 00:46:29,031 --> 00:46:33,398 cannot do and so that market is gonna adjust. It’s time for 1238 00:46:33,398 --> 00:46:34,597 gonna adjust. It’s time for clarification. That’s why what 1239 00:46:34,597 --> 00:46:36,231 clarification. That’s why what I’m saying. but what you’re 1240 00:46:36,231 --> 00:46:38,530 I’m saying. but what you’re saying is that the legislators 1241 00:46:38,530 --> 00:46:41,663 saying is that the legislators should get to um to uh 1242 00:46:41,663 --> 00:46:42,597 should get to um to uh completing the banking union. 1243 00:46:42,597 --> 00:46:43,797 completing the banking union. We know that it’s very 1244 00:46:43,797 --> 00:46:44,531 We know that it’s very contentious and will take time. 1245 00:46:44,531 --> 00:46:45,697 contentious and will take time. so it’s it’s a different time 1246 00:46:45,697 --> 00:46:47,464 so it’s it’s a different time horizon right. I mean if we 1247 00:46:47,464 --> 00:46:49,597 horizon right. I mean if we well if even even assuming the 1248 00:46:49,597 --> 00:46:50,597 well if even even assuming the European Commission, we have uh 1249 00:46:50,597 --> 00:46:52,263 European Commission, we have uh a project tomorrow morning, 1250 00:46:52,263 --> 00:46:53,164 a project tomorrow morning, let’s say it would be at least 1251 00:46:53,164 --> 00:46:54,430 let’s say it would be at least 1 year of legislative debate, 1252 00:46:54,430 --> 00:46:56,364 1 year of legislative debate, which in the context is 1253 00:46:56,364 --> 00:46:59,197 which in the context is extremely long. No. yes, that’s 1254 00:46:59,197 --> 00:47:00,496 extremely long. No. yes, that’s that’s fine. but now that I’m 1255 00:47:00,496 --> 00:47:01,997 that’s fine. but now that I’m outside of this, I have the 1256 00:47:01,997 --> 00:47:03,131 outside of this, I have the luxury to say that if that 1257 00:47:03,131 --> 00:47:04,464 luxury to say that if that happens, then you that means 1258 00:47:04,464 --> 00:47:05,431 happens, then you that means leaving bones to their own 1259 00:47:05,431 --> 00:47:09,164 leaving bones to their own devices and you may or may. 1260 00:47:09,631 --> 00:47:16,630 I think um so um Martin uh this 1261 00:47:16,630 --> 00:47:18,464 I think um so um Martin uh this is uh back to you right. I mean 1262 00:47:18,464 --> 00:47:19,463 is uh back to you right. I mean completion of the banking union 1263 00:47:19,463 --> 00:47:20,664 completion of the banking union and something you have 1264 00:47:20,664 --> 00:47:22,896 and something you have mentioned you have said that uh 1265 00:47:22,896 --> 00:47:25,498 mentioned you have said that uh the commission was sinking of 1266 00:47:25,498 --> 00:47:27,930 the commission was sinking of accelerating exist um but I 1267 00:47:27,930 --> 00:47:29,397 accelerating exist um but I have I have two questions in 1268 00:47:29,397 --> 00:47:30,797 have I have two questions in that matter and I guess my 1269 00:47:30,797 --> 00:47:31,831 that matter and I guess my confusion of the banking union. 1270 00:47:31,831 --> 00:47:33,597 confusion of the banking union. We’re really mean making 1271 00:47:33,597 --> 00:47:34,663 We’re really mean making resolution work as an initially 1272 00:47:34,663 --> 00:47:36,231 resolution work as an initially intended, which I said it’s 1273 00:47:36,231 --> 00:47:39,497 intended, which I said it’s not. On the experience of the 1274 00:47:39,497 --> 00:47:40,596 not. On the experience of the last few years because we say 1275 00:47:40,596 --> 00:47:42,363 last few years because we say we won’t but we do bail out 1276 00:47:42,363 --> 00:47:44,364 we won’t but we do bail out every time. there’s a problem 1277 00:47:44,364 --> 00:47:45,997 every time. there’s a problem uh and uh the other one of 1278 00:47:45,997 --> 00:47:46,664 uh and uh the other one of course is the deposit 1279 00:47:46,664 --> 00:47:48,463 course is the deposit insurance, which has also 1280 00:47:48,463 --> 00:47:50,631 insurance, which has also invention by here um so um and 1281 00:47:50,631 --> 00:47:52,896 invention by here um so um and also questions on uh the 1282 00:47:52,896 --> 00:47:54,564 also questions on uh the regulatory treatment of 1283 00:47:54,564 --> 00:47:55,531 regulatory treatment of sovereign exposures. maybe in 1284 00:47:55,531 --> 00:47:58,097 sovereign exposures. maybe in uh and and and related issues. 1285 00:47:58,097 --> 00:47:59,797 uh and and and related issues. So all this is very difficult. 1286 00:47:59,797 --> 00:48:01,864 So all this is very difficult. We know that um my two 1287 00:48:01,864 --> 00:48:04,597 We know that um my two questions are the following 1288 00:48:04,597 --> 00:48:05,763 questions are the following specifically uh does it make 1289 00:48:05,763 --> 00:48:08,031 specifically uh does it make sense? Back to the position in 1290 00:48:08,031 --> 00:48:09,164 sense? Back to the position in the midst of a major crisis, or 1291 00:48:09,164 --> 00:48:10,531 the midst of a major crisis, or is it something that you know 1292 00:48:10,531 --> 00:48:12,264 is it something that you know can only be tackled when things 1293 00:48:12,264 --> 00:48:14,663 can only be tackled when things are a bit calmer. So is it how 1294 00:48:14,663 --> 00:48:15,997 are a bit calmer. So is it how do you seize this trade off 1295 00:48:15,997 --> 00:48:18,364 do you seize this trade off right onto one hand? Uh it’s 1296 00:48:18,364 --> 00:48:19,730 right onto one hand? Uh it’s important to give a sense of 1297 00:48:19,730 --> 00:48:20,664 important to give a sense of direction. That’s been what I 1298 00:48:20,664 --> 00:48:22,731 direction. That’s been what I said, but on the other hand 1299 00:48:22,731 --> 00:48:25,031 said, but on the other hand have been having AA legislative 1300 00:48:25,031 --> 00:48:26,597 have been having AA legislative debate that will last for a 1301 00:48:26,597 --> 00:48:28,097 debate that will last for a number of partners at least 1302 00:48:28,097 --> 00:48:30,197 number of partners at least that can be disruptive and the 1303 00:48:30,197 --> 00:48:31,397 that can be disruptive and the other one is the next 1304 00:48:31,397 --> 00:48:32,230 other one is the next generation of you, of course 1305 00:48:32,230 --> 00:48:34,164 generation of you, of course because we now have a major 1306 00:48:34,164 --> 00:48:36,063 because we now have a major step forward uh that was agreed 1307 00:48:36,063 --> 00:48:38,364 step forward uh that was agreed on in July, we will have 1308 00:48:38,364 --> 00:48:39,930 on in July, we will have massive issues of you that it’s 1309 00:48:39,930 --> 00:48:42,531 massive issues of you that it’s a kind of you say it’s uh. Of 1310 00:48:42,531 --> 00:48:44,430 a kind of you say it’s uh. Of us want to pull it to you. I 1311 00:48:44,430 --> 00:48:45,930 us want to pull it to you. I guess we have a license for 1312 00:48:45,930 --> 00:48:46,930 guess we have a license for that you can do. That’s not an 1313 00:48:46,930 --> 00:48:48,997 that you can do. That’s not an official language uh and uh and 1314 00:48:48,997 --> 00:48:51,864 official language uh and uh and and so uh how does it shape the 1315 00:48:51,864 --> 00:48:54,064 and so uh how does it shape the debate about banking union? for 1316 00:48:54,064 --> 00:48:55,463 debate about banking union? for example, if we think of 1317 00:48:55,463 --> 00:48:56,196 example, if we think of regulatory treatment of 1318 00:48:56,196 --> 00:48:58,263 regulatory treatment of sovereign exposures, my 1319 00:48:58,263 --> 00:48:59,131 sovereign exposures, my impression is it’s potentially 1320 00:48:59,131 --> 00:49:02,530 impression is it’s potentially gain changer so um uh back to 1321 00:49:02,530 --> 00:49:04,896 gain changer so um uh back to you. Yes. thank you need to um 1322 00:49:04,896 --> 00:49:06,831 you. Yes. thank you need to um the first to rebound on uh on 1323 00:49:06,831 --> 00:49:08,197 the first to rebound on uh on what the Beis said. I would 1324 00:49:08,197 --> 00:49:10,431 what the Beis said. I would love a situation where the 1325 00:49:10,431 --> 00:49:12,097 love a situation where the commission would uh set the 1326 00:49:12,097 --> 00:49:14,297 commission would uh set the direction and then the market 1327 00:49:14,297 --> 00:49:15,431 direction and then the market and the member states would 1328 00:49:15,431 --> 00:49:16,330 and the member states would follow and fortunately it a 1329 00:49:16,330 --> 00:49:20,931 follow and fortunately it a little bit more difficult. 1330 00:49:50,064 --> 00:49:51,730 Interests of the member states 1331 00:49:51,730 --> 00:49:54,297 Interests of the member states do not seem to be well aligned 1332 00:49:54,297 --> 00:49:56,564 do not seem to be well aligned but on the consolidation of the 1333 00:49:56,564 --> 00:49:58,631 but on the consolidation of the banking sector, but also on uh 1334 00:49:58,631 --> 00:50:01,964 banking sector, but also on uh on on on banking union that at 1335 00:50:01,964 --> 00:50:02,864 on on on banking union that at large, we think uh in the 1336 00:50:02,864 --> 00:50:05,930 large, we think uh in the commission in particular that 1337 00:50:05,930 --> 00:50:09,898 commission in particular that large cross-border banks should 1338 00:50:09,898 --> 00:50:13,197 large cross-border banks should uh should have um it should be 1339 00:50:13,197 --> 00:50:14,597 uh should have um it should be easier for them to manage 1340 00:50:14,597 --> 00:50:16,131 easier for them to manage capital and liquidity on a 1341 00:50:16,131 --> 00:50:17,197 capital and liquidity on a cross-border basis because 1342 00:50:17,197 --> 00:50:19,997 cross-border basis because that’s an important. Incentive 1343 00:50:19,997 --> 00:50:23,830 that’s an important. Incentive uh to uh uh foster cross border 1344 00:50:23,830 --> 00:50:24,930 uh to uh uh foster cross border consolidation and I think uh 1345 00:50:24,930 --> 00:50:27,430 consolidation and I think uh market analysts would see that 1346 00:50:27,430 --> 00:50:29,930 market analysts would see that uh as extremely important uh to 1347 00:50:29,930 --> 00:50:30,463 uh as extremely important uh to but unfortunately, 1348 00:50:30,463 --> 00:50:31,964 but unfortunately, unfortunately we haven’t we 1349 00:50:31,964 --> 00:50:35,464 unfortunately we haven’t we haven’t managed to uh to uh to 1350 00:50:35,464 --> 00:50:38,398 haven’t managed to uh to uh to get to a consensus on a way 1351 00:50:38,398 --> 00:50:39,997 get to a consensus on a way forward with uh with the member 1352 00:50:39,997 --> 00:50:42,397 forward with uh with the member states on uh on on on on that 1353 00:50:42,397 --> 00:50:45,197 states on uh on on on on that now uh but you know as you know 1354 00:50:45,197 --> 00:50:47,663 now uh but you know as you know uh discussions are continuing 1355 00:50:47,663 --> 00:50:49,197 uh discussions are continuing uh with uh with the member 1356 00:50:49,197 --> 00:50:52,496 uh with uh with the member states now on sequencing. And 1357 00:50:52,496 --> 00:50:53,197 states now on sequencing. And and priorities, I think it’s 1358 00:50:53,197 --> 00:50:55,531 and priorities, I think it’s fair to say sorry to interrupt 1359 00:50:55,531 --> 00:50:57,964 fair to say sorry to interrupt you, I was actively continuing. 1360 00:50:57,964 --> 00:51:01,131 you, I was actively continuing. Oh yes I don’t know what your 1361 00:51:01,131 --> 00:51:03,497 Oh yes I don’t know what your definition of uh active uh is 1362 00:51:03,497 --> 00:51:07,164 definition of uh active uh is uh but uh yes no I was getting 1363 00:51:07,164 --> 00:51:08,463 uh but uh yes no I was getting to that. I think it’s it’s it’s 1364 00:51:08,463 --> 00:51:11,031 to that. I think it’s it’s it’s fair to say that um over the 1365 00:51:11,031 --> 00:51:12,596 fair to say that um over the last few months the priority 1366 00:51:12,596 --> 00:51:14,931 last few months the priority not to be uh under the uh 1367 00:51:14,931 --> 00:51:17,030 not to be uh under the uh Croatian presidency has been to 1368 00:51:17,030 --> 00:51:18,864 Croatian presidency has been to uh you know take care of the uh 1369 00:51:18,864 --> 00:51:23,364 uh you know take care of the uh of the pandemic. And the uh the 1370 00:51:23,364 --> 00:51:25,964 of the pandemic. And the uh the fallout of uh of uh of the 1371 00:51:25,964 --> 00:51:29,930 fallout of uh of uh of the pandemic uh but uh there’s uh 1372 00:51:29,930 --> 00:51:31,531 pandemic uh but uh there’s uh acknowledgement and now that uh 1373 00:51:31,531 --> 00:51:34,631 acknowledgement and now that uh we need to get back to uh to uh 1374 00:51:34,631 --> 00:51:37,164 we need to get back to uh to uh structural long-term issues and 1375 00:51:37,164 --> 00:51:39,864 structural long-term issues and uh and discussions are taking 1376 00:51:39,864 --> 00:51:42,197 uh and discussions are taking place uh with the member states 1377 00:51:42,197 --> 00:51:44,930 place uh with the member states on the various facets of uh of 1378 00:51:44,930 --> 00:51:47,597 on the various facets of uh of banking union beat uh uh home 1379 00:51:47,597 --> 00:51:49,731 banking union beat uh uh home host issues. it is reforming 1380 00:51:49,731 --> 00:51:53,031 host issues. it is reforming uh. Management framework, which 1381 00:51:53,031 --> 00:51:55,496 uh. Management framework, which is uh as uh as you know, uh not 1382 00:51:55,496 --> 00:51:58,831 is uh as uh as you know, uh not not optimal but um I think it’s 1383 00:51:58,831 --> 00:52:00,231 not optimal but um I think it’s fair to say as well that the 1384 00:52:00,231 --> 00:52:02,030 fair to say as well that the discussions remain difficult 1385 00:52:02,030 --> 00:52:04,397 discussions remain difficult because uh the uh the interests 1386 00:52:04,397 --> 00:52:06,431 because uh the uh the interests of the member states are not 1387 00:52:06,431 --> 00:52:08,064 of the member states are not necessarily aligned would have 1388 00:52:08,064 --> 00:52:11,364 necessarily aligned would have to see uh what uh what the 1389 00:52:11,364 --> 00:52:12,864 to see uh what uh what the situation is at the end of uh 1390 00:52:12,864 --> 00:52:15,431 situation is at the end of uh of the German the German 1391 00:52:15,431 --> 00:52:16,998 of the German the German presidency, but uh in view of 1392 00:52:16,998 --> 00:52:18,497 presidency, but uh in view of the commission. commission 1393 00:52:18,497 --> 00:52:22,197 the commission. commission banking union remain. 1394 00:52:49,998 --> 00:52:53,964 And maybe have really uh 1395 00:52:53,964 --> 00:52:55,497 And maybe have really uh essential priorities in order 1396 00:52:55,497 --> 00:52:57,431 essential priorities in order to improve the banking 1397 00:52:57,431 --> 00:52:59,430 to improve the banking environment uh going uh going 1398 00:52:59,430 --> 00:53:01,464 environment uh going uh going forward and here I think uh 1399 00:53:01,464 --> 00:53:02,896 forward and here I think uh reforming the crisis management 1400 00:53:02,896 --> 00:53:04,464 reforming the crisis management framework and be ready is 1401 00:53:04,464 --> 00:53:06,064 framework and be ready is important because it doesn’t 1402 00:53:06,064 --> 00:53:10,697 important because it doesn’t work as a as intended. Uh I 1403 00:53:10,697 --> 00:53:11,263 work as a as intended. Uh I have a specific question 1404 00:53:11,263 --> 00:53:13,197 have a specific question because we’re getting to the 1405 00:53:13,197 --> 00:53:14,663 because we’re getting to the end uh also onto commissions to 1406 00:53:14,663 --> 00:53:15,930 end uh also onto commissions to attend. It’s slightly different 1407 00:53:15,930 --> 00:53:17,430 attend. It’s slightly different issue but uh which uh I think 1408 00:53:17,430 --> 00:53:19,063 issue but uh which uh I think it’s extremely important which 1409 00:53:19,063 --> 00:53:21,130 it’s extremely important which is anti money laundering. Um 1410 00:53:21,130 --> 00:53:22,564 is anti money laundering. Um there is a feeling out there 1411 00:53:22,564 --> 00:53:23,197 there is a feeling out there that there was a lot of 1412 00:53:23,197 --> 00:53:25,164 that there was a lot of momentum on this issue uh to 1413 00:53:25,164 --> 00:53:26,864 momentum on this issue uh to create a more consistent 1414 00:53:26,864 --> 00:53:29,197 create a more consistent supervisory framework uh back 1415 00:53:29,197 --> 00:53:33,397 supervisory framework uh back in back in uh oh I see I see is 1416 00:53:33,397 --> 00:53:37,230 in back in uh oh I see I see is putting the uh the results of 1417 00:53:37,230 --> 00:53:38,730 putting the uh the results of support on the screen and 1418 00:53:38,730 --> 00:53:40,031 support on the screen and because they want to distract 1419 00:53:40,031 --> 00:53:45,030 because they want to distract me um. So that’s interesting uh 1420 00:53:45,030 --> 00:53:47,197 me um. So that’s interesting uh your uh your your assessment is 1421 00:53:47,197 --> 00:53:50,596 your uh your your assessment is that banks uh by and large uh 1422 00:53:50,596 --> 00:53:52,030 that banks uh by and large uh may have enough capital The 1423 00:53:52,030 --> 00:53:53,663 may have enough capital The trolls this is I think we had a 1424 00:53:53,663 --> 00:53:55,030 trolls this is I think we had a bit more than forty votes, so 1425 00:53:55,030 --> 00:53:57,597 bit more than forty votes, so it’s not a huge number but uh 1426 00:53:57,597 --> 00:53:58,896 it’s not a huge number but uh but but but I think it’s uh 1427 00:53:58,896 --> 00:54:00,996 but but but I think it’s uh it’s an interesting outcome. Uh 1428 00:54:00,996 --> 00:54:02,496 it’s an interesting outcome. Uh thank you. I think you can 1429 00:54:02,496 --> 00:54:06,697 thank you. I think you can remove the from the screen so 1430 00:54:06,697 --> 00:54:10,863 remove the from the screen so back to my question uh um uh. 1431 00:54:10,863 --> 00:54:13,431 back to my question uh um uh. Martin um there was as I said 1432 00:54:13,431 --> 00:54:15,163 Martin um there was as I said momentum on AMS supervision at 1433 00:54:15,163 --> 00:54:16,130 momentum on AMS supervision at the end of last year, so it’s a 1434 00:54:16,130 --> 00:54:17,396 the end of last year, so it’s a bit of a feeling which may be 1435 00:54:17,396 --> 00:54:18,998 bit of a feeling which may be unfair, but the momentum is 1436 00:54:18,998 --> 00:54:21,530 unfair, but the momentum is being lost. uh can you give us 1437 00:54:21,530 --> 00:54:23,931 being lost. uh can you give us a sense of uh a commission will 1438 00:54:23,931 --> 00:54:27,163 a sense of uh a commission will put that as much enough energy 1439 00:54:27,163 --> 00:54:29,396 put that as much enough energy and enough uh you know uh fuel 1440 00:54:29,396 --> 00:54:31,097 and enough uh you know uh fuel into the discussion so that it 1441 00:54:31,097 --> 00:54:32,631 into the discussion so that it gets you into the foreseeable 1442 00:54:32,631 --> 00:54:35,731 gets you into the foreseeable future. No uh again uh as for 1443 00:54:35,731 --> 00:54:38,131 future. No uh again uh as for banking union, the momentum is 1444 00:54:38,131 --> 00:54:38,897 banking union, the momentum is still a very much there, 1445 00:54:38,897 --> 00:54:40,664 still a very much there, especially in the commission. 1446 00:54:40,664 --> 00:54:43,564 especially in the commission. Uh we produced the. Plan to 1447 00:54:43,564 --> 00:54:47,163 Uh we produced the. Plan to reform our AML uh framework in 1448 00:54:47,163 --> 00:54:49,863 reform our AML uh framework in the EU back in May, so we are 1449 00:54:49,863 --> 00:54:51,930 the EU back in May, so we are now uh working on the 1450 00:54:51,930 --> 00:54:54,030 now uh working on the implementation of this action 1451 00:54:54,030 --> 00:54:57,397 implementation of this action plan and we we we do plan to uh 1452 00:54:57,397 --> 00:54:59,531 plan and we we we do plan to uh uh table uh a very ambitious 1453 00:54:59,531 --> 00:55:02,930 uh table uh a very ambitious legislative package on that uh 1454 00:55:02,930 --> 00:55:04,831 legislative package on that uh early next year, but I mean 1455 00:55:04,831 --> 00:55:06,930 early next year, but I mean it’s simply takes time to 1456 00:55:06,930 --> 00:55:08,731 it’s simply takes time to prepare and uh the situation uh 1457 00:55:08,731 --> 00:55:10,464 prepare and uh the situation uh the current situation makes it 1458 00:55:10,464 --> 00:55:13,064 the current situation makes it even more. Even more difficult, 1459 00:55:13,064 --> 00:55:15,164 even more. Even more difficult, but uh the fact that we did not 1460 00:55:15,164 --> 00:55:17,930 but uh the fact that we did not have a very recently major AML 1461 00:55:17,930 --> 00:55:19,530 have a very recently major AML scandals doesn’t mean at all 1462 00:55:19,530 --> 00:55:21,164 scandals doesn’t mean at all that uh the momentum is lost 1463 00:55:21,164 --> 00:55:23,097 that uh the momentum is lost and I know that uh the member 1464 00:55:23,097 --> 00:55:25,764 and I know that uh the member states are working on uh on the 1465 00:55:25,764 --> 00:55:27,431 states are working on uh on the council conclusions on uh on 1466 00:55:27,431 --> 00:55:30,064 council conclusions on uh on the matter and I do think that 1467 00:55:30,064 --> 00:55:32,896 the matter and I do think that we will see also a uh an 1468 00:55:32,896 --> 00:55:35,164 we will see also a uh an ambitious approach uh emerging 1469 00:55:35,164 --> 00:55:37,064 ambitious approach uh emerging in the council and the European 1470 00:55:37,064 --> 00:55:39,130 in the council and the European Parliament has adopted a 1471 00:55:39,130 --> 00:55:43,330 Parliament has adopted a resolution which also sets. 1472 00:56:10,631 --> 00:56:13,963 Because I didn’t really enter 1473 00:56:13,963 --> 00:56:14,497 Because I didn’t really enter that uh which I can’t 1474 00:56:14,497 --> 00:56:16,964 that uh which I can’t understand frankly given where 1475 00:56:16,964 --> 00:56:19,331 understand frankly given where he is, but but but but how do 1476 00:56:19,331 --> 00:56:21,864 he is, but but but but how do you think of the transformation 1477 00:56:21,864 --> 00:56:23,964 you think of the transformation of the of the debate on banking 1478 00:56:23,964 --> 00:56:27,430 of the of the debate on banking union? uh by uh the emergence 1479 00:56:27,430 --> 00:56:30,197 union? uh by uh the emergence of uh uh again a according to 1480 00:56:30,197 --> 00:56:31,998 of uh uh again a according to your bone or not but uh you get 1481 00:56:31,998 --> 00:56:36,030 your bone or not but uh you get uh invest volumes well. uh it’s 1482 00:56:36,030 --> 00:56:37,796 uh invest volumes well. uh it’s inevitable that we are going to 1483 00:56:37,796 --> 00:56:39,631 inevitable that we are going to have a large increase in public 1484 00:56:39,631 --> 00:56:41,197 have a large increase in public that’s in Europe and as well, I 1485 00:56:41,197 --> 00:56:43,330 that’s in Europe and as well, I think it is inevitable, but I 1486 00:56:43,330 --> 00:56:46,163 think it is inevitable, but I think I mean. To somehow use 1487 00:56:46,163 --> 00:56:48,398 think I mean. To somehow use the word that the Magic Dragon 1488 00:56:48,398 --> 00:56:50,064 the word that the Magic Dragon use this is an increase good 1489 00:56:50,064 --> 00:56:52,164 use this is an increase good that it is well spent rather 1490 00:56:52,164 --> 00:56:53,896 that it is well spent rather than in bed. so it’s a 1491 00:56:53,896 --> 00:56:56,496 than in bed. so it’s a necessary and uh we know it’s 1492 00:56:56,496 --> 00:56:58,331 necessary and uh we know it’s uh it’s coming to a relative to 1493 00:56:58,331 --> 00:57:00,496 uh it’s coming to a relative to your um. so what is very 1494 00:57:00,496 --> 00:57:02,064 your um. so what is very important to me is how is that 1495 00:57:02,064 --> 00:57:04,797 important to me is how is that is used and what is stand for 1496 00:57:04,797 --> 00:57:07,197 is used and what is stand for so that is what the eventually 1497 00:57:07,197 --> 00:57:08,464 so that is what the eventually force the growth and the 1498 00:57:08,464 --> 00:57:10,097 force the growth and the economy no matter the level of 1499 00:57:10,097 --> 00:57:11,797 economy no matter the level of that in itself because we know 1500 00:57:11,797 --> 00:57:13,197 that in itself because we know this is inevitable to support 1501 00:57:13,197 --> 00:57:16,230 this is inevitable to support the. 1502 00:57:37,497 --> 00:57:39,064 Oh, we don’t care you anymore. 1503 00:57:39,064 --> 00:57:41,164 Oh, we don’t care you anymore. um okay. well uh that’s 1504 00:57:41,164 --> 00:57:42,697 um okay. well uh that’s unfortunate to have a technical 1505 00:57:42,697 --> 00:57:44,863 unfortunate to have a technical difficulty at the very end but 1506 00:57:44,863 --> 00:57:47,064 difficulty at the very end but uh this is um uh it’s the end 1507 00:57:47,064 --> 00:57:48,896 uh this is um uh it’s the end of the panel because we want to 1508 00:57:48,896 --> 00:57:50,996 of the panel because we want to end up on time. Uh we will end 1509 00:57:50,996 --> 00:57:53,531 end up on time. Uh we will end on this note of suspense um on 1510 00:57:53,531 --> 00:57:55,864 on this note of suspense um on with uh with them we’ve had 1511 00:57:55,864 --> 00:57:59,930 with uh with them we’ve had been uh but uh I think we can 1512 00:57:59,930 --> 00:58:01,530 been uh but uh I think we can say we covered a lot of ground 1513 00:58:01,530 --> 00:58:04,896 say we covered a lot of ground and uh I want to uh sang very 1514 00:58:04,896 --> 00:58:09,396 and uh I want to uh sang very uh hardly uh all uh pandas. Uh 1515 00:58:09,396 --> 00:58:11,163 uh hardly uh all uh pandas. Uh I was a bit harsh with the time 1516 00:58:11,163 --> 00:58:12,697 I was a bit harsh with the time this thing, but I think it 1517 00:58:12,697 --> 00:58:14,097 this thing, but I think it allowed us to address a number 1518 00:58:14,097 --> 00:58:15,796 allowed us to address a number of very important topic 1519 00:58:15,796 --> 00:58:17,631 of very important topic questions about the financial 1520 00:58:17,631 --> 00:58:18,397 questions about the financial and especially the banking 1521 00:58:18,397 --> 00:58:20,597 and especially the banking sector right now in Europe. so 1522 00:58:20,597 --> 00:58:21,597 sector right now in Europe. so thanks very much to the 1523 00:58:21,597 --> 00:58:23,197 thanks very much to the panelists. Thanks for thanks 1524 00:58:23,197 --> 00:58:24,597 panelists. Thanks for thanks very much to the origins for 1525 00:58:24,597 --> 00:58:25,830 very much to the origins for engagement. Thank you very much 1526 00:58:25,830 --> 00:58:27,964 engagement. Thank you very much to the brutal team uh for uh 1527 00:58:27,964 --> 00:58:29,430 to the brutal team uh for uh making it happen because there 1528 00:58:29,430 --> 00:58:31,163 making it happen because there is a lot of team effort uh in 1529 00:58:31,163 --> 00:58:33,430 is a lot of team effort uh in uh in uh preparing for sessions 1530 00:58:33,430 --> 00:58:35,597 uh in uh preparing for sessions uh and I look forward to the 1531 00:58:35,597 --> 00:58:36,563 uh and I look forward to the continuation of the of the 1532 00:58:36,563 --> 00:58:39,030 continuation of the of the group and meetings. Again 1533 00:58:39,030 --> 00:58:41,964 group and meetings. Again everybody for participating um 1534 00:58:41,964 --> 00:58:45,863 everybody for participating um this session is that you’re.