[UNK]. • for example, bigtech firms appear increasingly to be making inroads into the financial services sector : think libra. • as a general rule, regulation should always be risk - oriented : it isn ’ t just the specific financial transaction that is critical here, but the associated risk to individual institutions or the financial system. • cologne ’ s economic development demonstrates how structural change can succeed. around the turn of the 19th century, cologne was an important financial centre [ 14 ] – and, more than 200 years later, the city was much less severely affected by the consequences of the financial crisis than other regions in germany thanks to its highly diversified economic structure. ladies and gentlemen, taking action against competitive distortions and market failure is one of the core tasks of economic policymakers. moreover, they need to create an environment which is, all in all, conducive to growth. in discussions on current affairs, opinions often vary greatly with respect to how an innovation - friendly and yet socially balanced policy can succeed. in my view, the decision as to which particular measure should be chosen ought to be based as far as possible on fact. • to give a concrete example, the halle institute for economic research established the centre for evidence - based policy advice in 2014. [ 16 ] the centre ’ s objective is to lay the foundations for more empirically substantiated economic policy decisions. a recently conducted project investigated the impact of regional policy incentives on individual firms. the findings show that the incentives led to new jobs being created, though there was no demonstrable effect on firms ’ productivity. • projects of this kind show that there are many ways of achieving an economic policy objective. evaluations can show which measures work and what side effects they may have. • bearing this in mind, at the end of 2019, germany ’ s government decided to take an even more systematic approach to evaluating legislative proposals in future. but the government ’ s actions aren ’ t just limited to incentives. in this setting, public investment is also key – not least as a driver of private investment. • i ’ m thinking here, for example, of measures to improve the transport infrastructure, measures for high - performance digital networks, the expansion of childcare and investment in the education system. • economically meaningful projects need to be carried out promptly and [UNK]. [UNK] funding isn ’ t usually the problem here. instead, bottlenecks are often caused by a lack of construction or planning capacity, as well as pro

is necessary, therefore, is an iterative approach that addresses individual aspects of financial stability step by step and tackles the subject from a number of different directions. 3. 2 marrying micro and macro data macroprudential surveillance has a lot to do with gaining a bird ’ s eye view of the individual market players and their interlinkages. consequently, what the analysts need is an approach that appropriately integrates micro and macro data. this observation presents a case for a more in - depth use of statistical micro data. to give an example : when we look at the balance sheet of a bank as reported to statistics, we know that it is precisely this data that is used to derive national and euro - zone money and credit aggregates, financial accounts referring to the banking sector, external positions, bis locational banking statistics and so forth. this guarantees a high degree of consistency for analytical purposes. not least for this reason, statisticians have begun to put additional emphasis not only on the provision of aggregates but also more and more on the provision of granular data that can likewise be used for micro and macro analysis. a case in point is the escb ’ s well established centralised securities database and the new escb project of a securities holdings statistics database. bis central bankers ’ speeches 3. 3 reconciling single entity and consolidated data if macroprudential analysts are to rely more heavily on statistical micro data, statisticians will have to adopt a two - way approach. they will have to provide data on a single - entity as well as on a consolidated basis. both approaches are necessary to get the full picture. ideally, the analysis of consolidated data would be compatible with single entity analysis. this would enable us to take a look from the corporate perspective while keeping in focus the interrelationship between branches and subsidiaries. it is up to the statisticians to develop viable solutions. filling important data gaps as to the issue of data gaps, there are two areas which both from a statistical and from an analytical point of view appear particularly challenging. these are the scarcity of data on the shadow banking system and the unsatisfactory progress being made in building a broader database on the insurance sector. 4. 1 shadow banking system credit intermediation via shadow banking has been producing serious financial distress, which contributed to the crises and which continues to be a risk factor for the stability of the financial system. moreover, risks for the financial system tend to be systematically stemming from this