The banking union will deliver a higher level of structural coherence to the euro area’s financial system, which has already been considerably strengthened since 2008: banks’ capital levels have been substantially consolidated, certain activities have been streamlined and the most stressed banks have been restructured. Recent numbers show major advances for European banks in their efforts to strengthen their capital base, in line with Basel III requirements and, in particular for big international banks, quite comparable to capital  BIS central bankers’ speeches  3  strengthening in US banks (when differences in accounting standards are neutralised). The banks have reimbursed half of the liquidity injected via the two LTRO programmes. 4. The Eurosystem  From the very first signs of the crisis (remember the Eurosystem injected 90 billion euros in August 2007 to counter the impact of the first freeze in the financial markets), the Eurosystem has provided constant support to bank funding (and thereby underpinning credit to the economy). We have been able to use our collateral framework – with a wide range of counterparties accepted – to relieve the liquidity constraints faced by banks. The maximum maturity of our operations has increased from three months before the crisis to three years. Through these measures, we have addressed the liquidity pressures on banks and avoided a genuine credit crunch. Both our standard and non-standard monetary policies have prevented the materialisation of deflation risk. The programme we launched a year ago – Outright Monetary Transactions – succeeded in countering speculation about a euro area break-up.

Opening Remarks Veerathai Santiprabhob, Governor of the Bank of Thailand Bangkok Sustainable Banking Forum 2019 13 August 2019, Bangkok, Thailand Distinguished guests, Ladies and gentlemen, Good morning and welcome to the Bangkok Sustainable Banking Forum 2019. This forum was first started last year to promote sustainability practices in the Thai financial sector and to highlight the potential role of the financial sector in addressing common challenges facing the Thai society, such as income inequality, environmental degradation, excessive household debt, and the persistent problem of corruption. Certainly, addressing the challenges around environmental, social, and governance (ESG) aspects are critical for the sustainability of the Thai economy and to some may seem far beyond financial institutions’ core mandates. Nevertheless, as main intermediaries of financial resources, the financial sector can influence how these resources are allocated and, hence, can influence how the economy and society progress over the longrun. Many people may view that the concept of sustainability for the financial sector generally encompasses financial institutions partaking in charity or corporate social responsibility projects. I am afraid that the concept is often misunderstood. The core concept of sustainability needs to be considered first in the context of the long-run sustainability of the financial business itself. When financial institutions focus mainly on short-term gains, neglecting the potential long-term effects or negative spillover of their activities, this can in fact increase  1/7  financial institutions’ risks; risks that can impair their credibility, public trust, and financial positions in the long-run. Allow me to highlight three well-known incidents in particular.