This is particularly relevant in the current setting of low demand for financing in Spain, in which this trend could contribute to further eroding the net interest margins in some market segments. To conclude, let me sum up the key messages I would like to convey. In recent years, Spanish credit institutions have made sterling efforts to overcome the problems stemming from the crisis and to adapt to the new and stricter regulatory requirements. This has been reflected in the significant improvements in their solvency, profitability and asset quality. However, despite these improvements, Spanish banks continue to face major challenges, largely shared with other euro area banking systems. These include, most notably: (i) stepping up sales of non-productive assets (ii) the need to strengthen capital, (iii) addressing profitability challenges without unduly easing credit standards and, lastly (iv) harnessing new technologies in a competitive environment of potential new competitors. In an economy as highly banked as Spain’s, overcoming these challenges is key to the banking industry gaining a sufficient position of strength from which to contribute to economic growth and job creation. Thank you for your attention. 8/8
This defence must be accompanied, on the one hand, by a reform of the rules of world trade so as to include more effective mechanisms to guarantee a more balanced playing field; and, on the other, by domestic policies (flexibility of the labour market, a sound social security network, and the creation of educational and training opportunities) that adequately address the distributive problems that may stem from trade exchanges. It is also worth mentioning the promotion of trade openness in new sectors, mainly services, where the potential profit margin is significantly higher. Without further ado, let me introduce the panelists. We are honoured to have with us today three very experienced representatives of the central bank community of the Mediterranean region. 4/5  Mr. Abdellatif Jouahri, Governor of the Bank Al Maghrib. Mr. Sadiq al-Kabir, Governor of the Central Bank of Libya. Mr. Marc-Olivier Strauss-Kahn, Managing Director and Special Adviser of the Governor. They are very well suited to address the topics of this panel as they have a far-reaching knowledge of the economies of the region and long-dated experience as policymakers. Governor Jouahri, the floor is yours. 5/5