the drying up of the unsecured interbank market a price worth paying for lower interest rate volatility and tighter interest rate control in the money markets? at present, it is difficult to envisage how the unsecured interbank money market could be revived in full in the near future, reaching the pre - global financial crisis levels. this is due both to regulatory reasons and to fragmentation. post - crisis, banks appear reluctant to lend each other in the unsecured interbank market, pricing such lending at levels that are sufficient to compensate for counterparty credit risk. at the same time, short - term ( below 6 months ) interbank funding does not contribute towards satisfying the nsfr requirements. as a result, the unsecured segment of the interbank market is unattractive for prospective borrowers and is not expected to regain importance. furthermore, heterogeneity within and across the banking systems of euro area countries impedes the efficient redistribution of reserves across banks and jurisdictions, giving rise to local reserve scarcity and cross - border segmentation. although certain choices in terms of the operational framework might be more effective than others in encouraging interbank market activity, my impression is that the unsecured interbank market will not resume the activity evidenced prior to 2008. in any case, the choice of the appropriate set - up of the operational framework should follow a holistic approach, as explained previously. the secured interbank market, on the other hand, could redistribute liquidity to a sufficient degree. however, operational complexity and costs imply that not all banks, particularly smaller ones, can be active in that segment. ultimately, will the ecb's operational review be used to justify a large structural bond portfolio, the true purpose of which would be to support weaker member states? 5 / 7 bis - central bankers'speeches let me first highlight that monetary financing is prohibited by the treaty. the review of the operational framework has been deemed necessary, in order to optimise the efficient transmission of policy rates, thus steering market rates towards intended levels. we are still elaborating on the defining parameters of the operational framework. we plan to publish the outcome of our deliberation on this review in spring. overall, asset purchases are an important part of our toolkit. by now we have gained extensive experience with the use of this instrument and have, in my view, always used it wisely to meet our price stability objective. as my

##obalisation, artificial intelligence, as well as the green transition and climate change adaptation policies. 1 / 7 bis - central bankers'speeches given the uncertain overall impact of these effects and the significant unknowns and ambiguity surrounding the computation of natural interest rates, their prospective level and evolution are not easily determined. turning now to the lessons learnt, experience gained during the past crises has been extremely valuable. first, monetary policy needs to remain flexible so that it can accommodate potential future shocks to price stability, of any nature and direction. second, financial stability considerations need to be taken into account in the decision making of monetary policymakers, in their pursuit of price stability. the past decade provided us with new insights into what monetary policy can do. we are now better prepared to implement the appropriate monetary policy mix, with standard and non - standard tools, if we were to face new challenges. we have a better understanding of what works and how to reduce possible side effects on the financial system. the provision of ample liquidity through non - standard measures in the context of the low interest rate environment contributed both correctively and preventively on the macroeconomy and the financial system. specifically : it alleviated impairments in the policy transmission mechanism ; it safeguarded the smooth functioning of the financial system and strengthened the bank lending channel ; it mitigated the negative impact of the financial sector turmoil on the economy ; it helped the euro area emerge from a crisis that threatened the monetary union's existence ; and it minimised recessionary risks, while ensuring price stability. at the same time, the prominent role of macroprudential and supervisory policies has been brought out during the past few years. by addressing risks to financial stability and increasing the resilience of the financial sector, these policies have supported the smooth transmission of monetary policy impulses and have contributed to price stability over the medium term. all in all, the resilience of the euro area financial sector has improved markedly and provides a cushion to future crisis episodes. several measures have contributed to this direction, such as, for instance, the establishment of the ( still incomplete ) banking union, with the single supervisory mechanism and the single resolution mechanism at its core. however, let me express my firm belief that we need more europe ; as integration and policy coordination in the monetary union progress – and with the completion of the banking union, which i consider of paramount importance – the euro area economy and its financial system will become increasingly resilient to future