I should like to highlight this latter aspect of price-setting policy at the level of products or services since, traditionally, services that are not explicitly charged and whose cost has been covered by the net interest margin have been provided to customers. I believe it is important to introduce transparency and rigour into price-setting. Without it, the reality of the business is distorted as is, consequently, the attendant analysis, and informed decision-  1  “SSM thematic review on profitability and business models. Report on the outcome of the assessment.”, September 2018. 3/8  making is hampered. Not in vain, in the aforementioned thematic review price-setting is included among the areas where the SSM recommends making improvements. I would further stress that, in this comprehensive analysis of the bank’s accounts, there should be some thought on the weight of operating expenses. Unquestionably, Spanish banks have made a great effort in terms of capacity adjustment in recent years. Numbers of staff and offices have fallen approximately by 32% and 40%, respectively, from their 2008 peaks. It is necessary to continue paying attention to these expenses, so as to ensure they are in step with developments in lending activity and in revenue. Against this background, progress in new technologies, and the alternatives these offer to the traditional means of providing bank services, may prove an opportunity to cut costs and come into line with the change under way in the customer-bank relationship.
Such investment will also afford banks a greater guarantee of success when addressing the growing competition from technology firms. Likewise, these investments are needed to mitigate the impact and probability of cyber risks, which we have identified as a growing threat. Fourth, let us not forget that there are also various challenges in the regulatory and institutional arenas, both globally and at the European level. The coming months will be key to ensuring the full adoption of the Basel III accord in Europe. This will enable us to remain at the forefront of the multilateral response to this crisis and to establish, within Europe, the benefits that proper banking regulation has for economies’ capacity to absorb shocks and foster the public’s well-being. Moreover, the COVID-19 crisis has once again reminded us of the pressing need to complete the Banking Union and strengthen the Capital Markets Union. The creation of a common European Deposit Insurance Scheme and the adoption of appropriate panEuropean resolution legislation for large institutions are key steps in this process, paving the way for cross-border mergers and acquisitions and the associated potential efficiency gains, for instance. Thus, further integration of the European financial system would open up greater risk diversification possibilities and facilitate financing for productive activities at a lower cost. Lastly, in the longer term, it will also be important that the banking sector provides an appropriate response to the risks posed by climate change.