All these (monetary, fiscal and structural) policies may be especially effective is they are adopted jointly, thus harnessing the positive complementarities that exist between them. As I discussed at the beginning of my speech, profitability has a direct and indirect effect on the Spanish banking sector’s resilience to adverse shocks and, therefore, on the extent to which these intermediaries can contribute to amplifying or smoothing the impact of these shocks on the economy. Consequently, it is essential for Spanish banks to address the challenges which will mark their profitability in future, such as technological change, the reduction of non-productive assets, the strengthening of capital and the improvement of their reputation. Thank you for your attention. 13/13
At the same time, it is a competitive disadvantage for Norwegian banks when their issues are covered by the quota, while this is not the case for issues by for example Swedish and Danish banks. Therefore, from 1 December 2010 we will include foreign bank issues in the bank quota without increasing the percentage rate of 35. From 15 February 2012, we will discontinue access to using bank issues as collateral for loans. Covered bonds will still be eligible as collateral, also when the bonds are issued by a bank’s own mortgage company. We assume that this will also contribute to developing the Norwegian covered bond market. Conclusion  Allow me to conclude. Developments in recent months indicate that the financial crisis in Norway will not develop into a real economic crisis. We have not experienced a bank solvency crisis as was the case 20 years ago. Unless the Norwegian economy is exposed to new major shocks, we expect the bankruptcy rate for Norwegian enterprises to stabilise or to be at about the same level recorded in the moderate downturn at the beginning of this decade. Nevertheless, the crisis has revealed weaknesses in the regulatory framework for banks, also in Norway. It is our hope and belief that international cooperation will set the stage for an improved regulatory framework and systems. For us in Norway, it is important that the Nordic countries can stand together. Thank you for your attention. BIS Review 131/2009  19