Benoît Cœuré: The known unknowns of financial regulation Panel contribution by Mr Benoît Cœuré, Member of the Executive Board of the European Central Bank, at the "Rethinking Macroeconomic Policy IV" Conference, Peterson Institute for International Economics, Washington DC, 12 October 2017. * * * Financial intermediation is at a crossroads.
Arguably, never before in history have banks faced as many significant challenges as they do today. Exceptionally low interest rates and more rigorous post-crisis regulation are weighing on banks’ earnings and limiting, at times, their ability to make full use of their balance sheets. Technological change too is threatening incumbents in many ways.