Opening statement by Dr Andreas Dombret, Member of the Executive Board of the Deutsche Bundesbank, at the press conference following publication of the comprehensive assessment results.
This is certainly an encouraging result, as for the banks, the marathon is only just beginning. Competition is becoming tougher and more international; regulation is becoming stricter, and supervision more European; in addition, the economic setting is challenging - think "low-interest-rate environment" - and technology is continuously evolving.
The markets look to the future, and banks need to do the same. None of the German banks should rest on their laurels because they have passed the stress test - to paraphrase a common German saying, after the stress test is before the stress test. That applies, above all, to those banks which only just made the grade. The markets and supervisors will be watching these banks particularly attentively in future.
All in all, Mr. Dombret considers the comprehensive assessment a success. It has helped to lift the veil of uncertainty that has surrounded the European banking system since the crisis. It has been a credible process, and one which will help to restore confidence in the banking sector and reassure the markets.
But the comprehensive assessment is not the end of the road. The overall setting in which banks operate is changing, and they need to adapt - in Germany, Europe and around the world.
Yet politicians must also play their part. The crisis has shown how dangerous an unstable banking system can be for the real economy. The most important step to address this issue is, of course, to improve regulation and supervision. That has been achieved.
But especially in Europe it would be worthwhile to take measures to ease the real economy's access to alternative sources of funding. Some initial ideas on a European capital markets union are already being discussed; let's seize the opportunity to make these ideas a reality.
Mr. Dombret concludes: “So I should actually correct what I said at the beginning of my remarks. It isn't just the banks which are now standing at the starting line of a marathon - so are politicians. And it is in everyone's interest to arrive safely and swiftly at the finishing line together. “
Full speech
© BIS - Bank for International Settlements
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article