to governor luis maria linde for naming me director general for economics, statistics and research almost two and a half years ago. that was, unquestionably, the necessary step for taking me to where i am today. 3 / 5 thank you, governor, for your constant support over this period. i hope to be up to the task of the legacy you are leaving us. my thanks, too, to the members of the bank ’ s executive commission and governing council and, most particularly, to the deputy governor, javier alonso. javier, your help and far - reaching knowledge of the bank are making these first weeks in the job easier for me. but, above all, i should like to thank my colleagues over the course of the years. it would be impossible to list them all ; many are here today. the career of a banco espana employee can only fully be understood through the prism of the numerous interactions and discussions between us, which are the bedrock on which we build our knowledge and our particular human capital. it is a privilege to be part of this environment and to participate in such an enriching process. finally, the most singular thanks are for my family. without them none of this would have been possible. let me seize this opportunity to refer briefly to what should, in my view, be the two main objectives of the banco de espana at this juncture and which are related to our relevance and reputation. the first has to do with our insertion into the eurosystem and into the single supervisory mechanism. some think this means that the banco de espana has an increasingly diminished role, given that the main functions linked to monetary policy and supervision of the financial system are decided in that framework. however, i believe all of us who have experienced this environment have emerged with a very different lesson learnt. indeed, we cannot overstate the extraordinary potential this setting offers to an institution such as ours which has always valued, and legitimately so, the soundness of its judgement. with that conviction, we should devote most of our efforts to forging closer insertion, collaboration and coordination - based links with our european partners with an essential aim in mind : to reinforce our weight and ability to influence decision - making. this is a challenge and it is also an opportunity, but it is above all a responsibility to support, from the vantage of the banco de espana, the project for european construction. the second objective has to do with our contribution to financial and macroeconomic stability. after an unprecedented

before 1 january 2014. under the draft bill, and without prejudice to the framework resulting from the entry into force of the single supervisory mechanism, the banco de espana will retain its current power to authorise the exercise of banking activities. moreover, it will receive additional powers, such as that to revoke banking licences. regarding the regime governing the purchase of qualifying holdings in credit institutions, the banco de espana will continue to be the authority responsible for assessing the proposals of potential purchasers, although now there are plans to give it powers of supervisory intervention, senior officer replacement, suspension of voting rights or, in extreme situations, licence revocation. as bank supervisor, the banco de espana will continue overseeing compliance with organisational and disciplinary regulations. to this end, the draft bill maintains its existing inspection and verification powers, although with some changes, such as that requiring the banco de espana to carry out yearly stress tests on supervised institutions to evaluate their solvency. additionally, in the context of the banco de espana ’ s prudential supervisory tasks, the draft bill equips it with certain tools envisaged in eu legislation, including the so - called pillar 2 measures such as additional own funds requirements, limitations on dividend distribution, restriction of certain activities and limitation of variable compensation. the banco de espana will also be empowered to set the “ additional capital margins ” envisaged in the draft bill. the banco de espana will continue drawing up supervisory guidelines. as a new development, it is envisaged that, if institutions ’ conduct does not comply with the guidelines, they will, if required by the supervisor, have to explain the reasons for such non - compliance. in the area of sanctions, the banco de espana retains its current powers, independently from the powers which may at any time be exercised by the european central bank within the framework of the single supervisory mechanism. against this background, significant changes were made which generally strengthen the regime currently in force. finally, the draft bill endows the banco de espana with supervisory, inspection and sanctioning powers in respect of compliance with obligations to offset, notify and reduce risks associated with the use of otc derivatives. to conclude : 2014 will, as we all know, be an extremely intense year as far as international financial regulation and supervision are concerned. there will be no lack of work. my best wishes to all of you and good luck. thank you. bis central bankers ’ speeches