Looking at the current situation of the global economy, it has finally overcome the financial crisis following the Lehman shock and has recently been heading toward recovery on the whole. However, the pace of recovery remains moderate and a risk of the euro area and other advanced economies tumbling into deflation has been noted.
That's why I firmly support that risk culture and governance are priorities in the banking supervision by the SSM. Looking at everything that has changed in the European banking sector since 2008, I think we are in a different situation now. European banks have stronger capital positions and the change in interest rate environment is in principle good news for the banks business models.