enhanced. the ecb will ensure that strong supervisory standards are applied in a homogenous way across the whole euro area. in addition, given a stronger consolidated perspective, efficiencies with respect to the allocation and transfer of intragroup capital and liquidity across the euro area can be enhanced. this will contribute to reducing market fragmentation, fostering financial integration and reaping the full benefits of the single market. we have been experiencing a low interest rate environment for a long time. what does this mean for banks and how will they be able to deal with the gradual exit from the accommodative monetary policy? rates will remain at the current levels for an extended period of time. by the time we start exiting this environment, the recovery will be more robust, and banks, thanks also to the banking union, will be in a better position than they are today. as a result of the crisis, several bank mergers and acquisitions have taken place in greece. do you believe that there is also a need for greater concentration within the sector at the european level? do european banks exhibit excess capacity? bis central bankers ’ speeches the consolidation of the banking sector in greece was a natural consequence of the crisis. the four core banks acted as consolidators, acquiring the good parts of the resolved nonviable institutions. i don ’ t have specific views on banking consolidation at the euro area level because i believe that it should be the outcome of a market - based process. i expect the banking union to improve the efficiency of the industry by creating a level playing field, by exposing unsustainable business models and by making public support for banks more difficult. bis central bankers ’ speeches

- malthusian as regards the liberalisation of trade. an open - minded attitude in this respect has the advantage of consolidating and strengthening price stability, increasing the purchasing power of consumers and encouraging long - term growth. as regards our present diagnosis on the situation of the eurozone we are very often asked three questions, namely : “ how do you assess the risks to price stability? “ “ what is your judgment on the present conjuncture in europe? “ and finally “ what about the euro on the exchange markets? ”. let me respond as concisely as possible to these three questions. to the first one i will refer to the analysis displayed, in the name of the governing council, by wim duisenberg : ” after the recent slowdown in monetary growth the risks to price stability from the monetary side have become increasingly balanced. caution still needs to be exercised ”. as far as the second question is concerned i can also refer to a joint analysis of the governing council : “ while downside risks to real gdp growth exist, growth is very likely to continue at a reasonably robust pace. ” finally, as regards exchange rates i will only mention that we are living in a universe of floating exchange system : in such a system exchange rates are not a target but are a pertinent indicator for monetary policy. and i see only one sentence to sum up our position : “ a solid, a strong euro is in the interest of europe ”. thank you for your attention. * * *