I will then continue by emphasising the importance of a strong financial system for a prosperous euro area. The euro area recovery and the support provided by the ECB’s monetary policy 2016 was, in many ways, a challenging year. The last time I spoke before this Committee, in April 20161, the global economy was emerging from an acute episode of financial instability.
Notably, in the 2019 National Survey of Community Banks, community bankers voiced a desire for more transparency into third-party service providers, to inform decisions about whether to enter into contracts with these providers and the type of contract that may be appropriate.3 In this regard, I believe the Federal Reserve should consider several possible steps.