On the positive side, banks have made meaningful progress in accounting for and addressing C&E risks. For instance, most banks acknowledge the materiality of these risks in their portfolios. This means that there is broad consensus among banks that C&E risks are a material source of financial risk and that they are impossible to evade.
And as long as this journey is not completed, new crises will inevitably come, and we have to stand ready to ride out those crises. Third, as the ECB, we do have instruments, and we’ve shown that we’re ready to use them and even design new ones while staying within our mandate.