andreas dombret : the savings bank sector – challenges and opportunities speech by dr andreas dombret, member of the executive board of the deutsche bundesbank, at the handelsblatt annual conference “ future strategies for savings banks and landesbanken ”, berlin, 26 february 2015. * 1. * * introduction president fahrenschon ladies and gentlemen thank you for your invitation. i am delighted to be able to speak to you again today at the handelsblatt annual conference, and i hope that this year ’ s prestigious event will be as successful as those in the past. the title of this year ’ s annual conference is “ future strategies for savings banks and landesbanken ”. so let ’ s take a brief look at what the future might hold in store and discuss the key challenges that lie ahead for the savings bank sector. do you know swimmy, a parable by the author and illustrator leo lionni? it ’ s a story about a shoal of red fish swimming together through the vast and wide ocean. now, i can ’ t say for sure if the shade of red is hks 13 – the business colour famously associated with savings banks – but i can nonetheless make out a number of clear parallels to the savings bank sector. leo lionni ’ s parable tells us that the fish can only overcome the many dangers and challenges they face on their journey through the ocean if they stick together as a shoal. it also shows us that each fish has a role to play within the shoal. and equally, it ’ s fair to say that the “ shoal of savings banks ” has navigated the choppy waters of the financial crisis pretty well – aided not least by the savings banks association ’ s compartmentalised structure. germany ’ s savings banks are generally highly trusted institutions, not least on account of their strong commitment to their local area and their close, often long - term customer relations. however, some savings banks have most certainly fared better than others, and the same can indeed be said for the landesbanken. and in the wake of the financial and sovereign debt crisis, new challenges are already looming on the horizon for the savings bank sector, and i would like, if i may, to discuss the two most pressing issues. the first concerns the outside world – the ocean in which the shoal of fish is swimming, if you will. the other is about the internal make - up – that is to

transition paths. global coordination to improve climate equity let me close with a final point on global coordination. as countries embark on different national transition paths at varying paces, a global challenge is the disproportionate impact on emerging economies. this makes it more difficult for them to control their own transition path due to economic and financial linkages2. this reality calls for a more coherent global coordination to galvanise collective actions, with stronger link to the ndcs3 under the paris agreement, that would help improve climate equity and mitigate risks of disorderly transitions. this would compel countries that generate transition spillovers to provide financing, technology and capacity building support to assist smaller and developing countries to adapt to climate change and take mitigating actions. this, in our view, is a step towards a more equitable and effective global mechanism to respond climate risk at a faster pace. thank you. 1 a platform to set the direction, to discuss climate change policies and actions, to drive green economic growth, to catalyse green technology and low - carbon growth at all levels, particularly in the federal and state governments. for example, measures to cut global ghg emissions ( e. g. removing fossil fuel subsidies, emission caps and carbon taxes ) could lead to higher risk of stranded assets in emerging and developing countries given their heavy reliance on fossil fuels. 3 nationally determined contributions. 3 / 3 bis central bankers'speeches