I have enjoyed throughout these many years, in a variety of forums and debates their always-to-the-point sharp remarks and so I hope that we can today benefit from their thoughts, thank you for being here Jacob, Jean-Claude and Axel. Ms. Adriana Arai will moderate the discussion. Ms. Arai joined Bloomberg News in 2004, and currently is executive editor for local language content and chair of the Bloomberg São Paulo Office Committee. Previously, she worked for Dow Jones Newswires in São Paulo, Brasília and London. Adriana, the floor is yours. BIS central bankers’ speeches  5
In doing so, I will perforce refer to some of the findings included by the Single Supervisory Mechanism (SSM) in its recently published thematic review of the determinants of profitability and business models.1 A comprehensive reflection Taking the first adjective, when I say a comprehensive reflection is necessary I refer to the fact that a bank should examine its income and costs at the greatest level of detail possible: by product and not by customer, by business line and by geography. It should seek to gain detailed knowledge of which activities generate recurring profits, and which occasional profits or even losses, delving into the reasons that may explain each of these results. This will allow the bank to identify whether there is scope to turn the profitability of certain activities around, or whether it is better to change tack or abandon such activity. In addition, the bank will be in a position to judge whether the reality of its business, understood as its assets/liabilities mix, and the decisions taken in and bearing on such activity are appropriate or need adjusting. In short, if the bank has advanced tools to improve profitability, it can develop an appropriate, consistent and comprehensive price-setting policy to ensure that the price it charges for a product or service matches its total cost, including the risk premium.