2. 2. 2. european commission, ‘ public consultation on possible changes to the capital requirements directive ( crd, consisting of directives 2006 / 48 / ec and 2006 / 49 / ec ) ’ ( available at www. europa. eu ). including adverse developments in financial markets, arise within a banking group which potentially jeopardises the stability of the financial system in any of the member states where entities of the group are located. 6. conclusions in 2001 the eurosystem highlighted the importance of the role played by central banks in supervision. the experience gained by central banks during the financial market turmoil confirms the fundamental appropriateness of the eurosystem ’ s position, which is also shared across the atlantic. in the us, a discussion has already started on how to improve coordination between the various authorities and on how to put the federal reserve in a position to better contribute to financial market stability. tim geithner has recently called for more powers to be given to the federal reserve in the field of oversight. in the european union, the european commission has launched initiatives to further reinforce the legal underpinnings for the cooperation and the exchange of information between supervisory authorities and central banks, and to build a consistent institutional framework for such an exchange. these initiatives are strongly supported by the ecb and should be implemented soon. improving the institutional framework is necessary, but not sufficient. it has to be followed by an effective implementation of the provisions and the activation of the available channels of communication between supervisors and the central banks, including the ecb. a substantial amount of work is already underway. it is up to us to make sure that it is finalised in time to address any challenges that global financial markets may pose to stability. thank you for your attention. references altunbas, y., gambacorta, l. and marques, d. ( 2007 ), “ securitisation and monetary policy ”, forthcoming ecb working paper. angeloni, i., kashyap, a. n., mojon, b., eds. ( 2003 ), monetary policy transmission in the euro area, cambridge university press. berger, a. n. and udell, g. f. ( 1992 ), “ some evidence on the empirical significance of credit rationing ”, the journal of political economy, vol. 100, no 5 ( october ), 1047 - 1077. berlin, m. and mester, l. j. (

peter praet : economic developments in the euro area remarks by mr peter praet, member of the executive board of the european central bank, at the european finance forum, frankfurt, 9 april 2018. * * * i would like to thank claus brand, maarten dossche and john hutchinson for their support in preparing this speech. the economic expansion clearly shows that our monetary policy has been effective in laying the groundwork for a return of inflation to a rate below, but close to, 2 % over the medium term. inflation developments remain subdued, however, and we have not yet met the governing council ’ s criteria for a sustained adjustment in the path of inflation, which is our stated condition for ceasing our net asset purchases. overall, an ample degree of monetary stimulus remains necessary for underlying inflation pressures to continue to build up and support headline inflation developments over the medium term. real gdp has expanded for 19 consecutive quarters. it grew by 2. 7 % year on year in the fourth quarter of 2017, according to preliminary data. this is well above the latest potential growth estimates of around 1. 5 %. 1 see, for example, the european commission ’ s “ european economic forecast – autumn 2017 ”. potential growth was estimated at 1. 4 % for 2017 and 1. 5 % for 2018 and 2019. the latest economic data and survey results point towards some moderation of late, but remain consistent with strong growth for the first quarter of this year. the composite output purchasing managers ’ index – which is closely correlated with growth in the euro area – remains above its long - term average and is close to a 12 - year high. moreover, eurostat ’ s economic sentiment indicator is around its highest level for 17 years. while risks to growth can be assessed as being broadly balanced, the international trade environment may have added to the downside. this is also reflected in financial conditions, which have recently tightened while remaining very supportive. the ongoing expansion has led to strong employment gains. the number of people employed in the euro area has increased by almost 7. 8 million since the trough in mid - 2013. this implies that all of the job losses recorded during the crisis have been recovered. the unemployment rate is at its lowest level since december 2008, despite an increase in the labour force of more than 2 %. consumer spending is being driven by steady growth in households ’ real disposable income, favourable bank lending conditions and the notable progress achieved in deleveraging. since