Another topic on the reform agenda is remuneration. Do we make banking boring when we combat greed and short-termism? I don’t think that aligning compensation more closely to a bank’s longer-term success makes banking boring. Finally, we have to distinguish between banking and finance. Making banking boring does not necessarily mean making finance boring. Only think of the shadow banking issue. 2.
This tool has been designed to counter unwarranted, disorderly market dynamics, with sufficient flexibility to respond to the severity of the risks facing policy transmission. It will safeguard the singleness of our monetary policy as the Governing Council proceeds on its policy rate normalisation path, helping us ensure price stability over the medium term in line with our mandate.