Looking forward, we should remain vigilant ahead of any potential unintended effect of low interest rates on the banking system. My third message is that banks, especially European banks, should step up their efforts to adapt their business models in order to become more profitable. For instance, banks need to improve their efficiency, whether through cost reductions, further consolidation and restructuring, or digitalisation and the adoption of new technologies –all of which are factors rather disconnected from monetary policy. They must also diversify their income sources. As an example of the latter, the successful geographical diversification pursued by some Spanish banks prior to the crisis not only helped them cope with the downturn, but still represents an increasing source of revenues. Banks can also achieve revenue diversification by relying less on net interest income and more on other non-interest income sources. Finally, they should also accelerate the reduction of non-performing loans. -  Excessive risk-taking  Global financial stability is not only threatened by developments in the banking sector. Insofar as non-bank intermediaries are playing an increasingly relevant role in the financial  5  sector, the risks associated with their activities are gradually becoming more systemic. Indeed, the process of bank disintermediation has accelerated in the euro area since the global financial crisis and, today, non-banks have more financial assets than banks. Likewise, around 50% of all cross-border claims in the world now involve a non-bank as a counterpart, while the figure was only about 35% in 2008.

6  What could be done to minimise the risks associated with these developments? Certainly, the build-up of debt across different sectors needs to be monitored. Also, the regulation and supervision of the non-bank financial sector needs to be revisited. Despite some recent improvements, it is fair to say that, compared to the banking sector, we do not have enough information about the activities of non-bank financial intermediaries, nor sufficient understanding of their interconnectedness with other market players. We also lack consistently tested macroprudential policy tools that could be used to address the risks that have been already identified in this market segment. Progress in this direction is of the utmost importance. “New” risks Of course, the risks to global financial stability originating from low profitability in the banking sector and the search for yield by different market participants should be carefully monitored and addressed going forward. Yet as I mentioned before, in a rapidly changing world and in an ever-evolving financial sector, regulators should likewise heed a set of emerging risks which could also be potentially dangerous for financial stability. And this because, in many cases, we do not have the data, or even the conceptual framework, to analyse their implications (especially when compared to the more traditional risks). -  Technology-related risks: cyber risks  I will launch the discussion on these “new” risks by referring to those associated with the adoption of new technologies. Clearly, new technologies are not just a risk, they are also an opportunity.