•  Let me finish with a few words on the development of macro-prudential frameworks across the globe. For the most part good progress has been made in setting up effective macroprudential frameworks at a national level. However, many emerging macro prudential risks are cross border in nature – for example the GFSR has identified global factors as having played an important role in the quadrupling of corporate debt across major emerging economies, much of which is in foreign currencies. The risk inherent in this build up of leverage has motivated calls for a normalisation of advanced economy monetary policy sooner rather than later – a global leaning against the wind. •  But tightening advanced economy monetary policy solely to discourage further borrowing could make the job of getting inflation back to target more difficult. So, just as using a targeted macroprudential tool is preferable to using monetary policy to tackle domestic financial stability risks, so too would it be preferable to use efficient and effective international macroprudential tools to target global risks to financial stability. The framework for international macroprudential co-ordination is currently still in its infancy, and there is much room for improvement by way of surveillance, design and implementation of global macroprudential tools. This perhaps is the next frontier for macro-prudential policy and an important one for the FSB and IMF to take forward given the potentially significant negative spillovers that might result. BIS central bankers’ speeches  3
In my opinion, fintech firms are at an early stage of development in which it is not yet clear which of them will become credible alternatives, so it is still early to say how they will evolve. In any event, the greater the likeness between their financial activity and traditional banking activity, the more they will be subject to requirements and controls similar to those of banks, tailored to the risk of the activity in question. That is to say, it is necessary to set fair rules of play ensuring neutrality on the basis of the risk involved and the activity carried out. 3 Final reflections In short, the Spanish banking industry, and other European institutions, face major challenges at a time of far-reaching transformation of traditional banking business. Regulatory reform, with the tightening of capital requirements and the introduction of the new resolution requirements that I have described, and the development of new technologies are two of the vectors of change. In this new environment, it is difficult to imagine that it will be possible to sustainably achieve the pre-financial crisis levels of profitability (in double digits). However, following the transformation undertaken in recent years and the progress achieved in terms of solvency and cleaning up balance sheets, the industry is today more resilient and in a better position to face these changes with confidence. In terms of efficiency, for example, Spanish banks are in a better position than the average institution supervised by the SSM.