I’d like to conclude with another quote on the future, this time from Nelson Mandela, more than 150 years after Kierkegaard: “A bright future beckons. The onus is on us, through hard work, 4/5  BIS central bankers' speeches  honesty and integrity, to reach for the stars.” I have every confidence that today’s agents have what it takes to thrive in the future, but the hard work of laying the necessary foundations must begin today. With that, I thank you for your time, and wish all of you a productive day ahead. 1 Customer  Behavior and Loyalty in Insurance: Global Edition www.bain.com/publications/articles/customer-behavior-loyalty-in-insurance-global-2017.aspx  2017. 2 Insurance Barometer Study survey in 2016 by the Life and Health Insurance Foundation for Education (LIFE) and  LIMRA 3 Customer  Behavior and Loyalty in Insurance: Global Edition www.bain.com/publications/articles/customer-behavior-loyalty-in-insurance-global-2017.aspx  5/5  2017. BIS central bankers' speeches
Some observers have voiced concerns that the APP could in fact negatively affect bank lending by squeezing margins and hence banks’ profitability. I do not share this view. ECB staff estimates of the impact of the APP show the overall effect on bank capital to be positive. Capital gains on securities held, lower funding costs, improved credit quality and higher intermediation volumes outweigh the negative impact of the flattening of the term structure on net interest income. Though structural problems certainly remain in the euro area banking sector, banks’ weak profitability is to a large extent linked to the macroeconomic environment – something that the successful implementation of our programme will help address. In sum, the expanded APP, combined with our other credit easing measures, is largely producing its desired effects. We judge that the recent volatility in financial markets has not materially affected this picture, although close monitoring and continuous assessment are warranted from a monetary policy perspective. It is nonetheless clear that the effectiveness of the APP would be enhanced by complementary measures from other policymakers. In particular, the improving economic and financial environment provides the ideal conditions for governments to press ahead with structural reforms, which are in turn necessary to make  BIS central bankers’ speeches  1  the recovery lasting. Raising expectations of future growth is vital to lift animal spirits and encourage a stronger rebound in investment, which is the cornerstone of a self-sustaining economic recovery. 2  BIS central bankers’ speeches