the supervisory review and evaluation process which the supervisory board initiated on the basis of independent expert advice. generally, if we identify weaknesses, we need to use the full range of supervisory tools in a timely and effective manner. this year, we will intensify the use of escalation mechanisms to ensure that supervisory findings are addressed and deficiencies are remedied by banks. for example, for climate - related and environmental risks, we have established clear supervisory guidance and follow - up procedures, setting deadlines for 2 / 3 bis - central bankers'speeches banks to progressively meet all supervisory expectations by the end of 2024. we also envisage the use of periodic penalty payments should supervised entities fail to comply with the requirements. moving forward, we need to continue our efforts to complete the banking union given the challenges and structural changes that lie ahead, completing the banking union is more important than ever. europe needs a strong and resilient banking sector to withstand shocks and promote growth. a truly integrated single market for financial services, with a complete banking union at its heart, would ensure that businesses and households have access to sufficient and affordable funding. as stress in the system may increase, we need to close the remaining gaps in our crisis management framework as soon as possible. strong supervision and credible resolution are indeed closely connected and reinforce each other. the crisis management and deposit insurance review will give authorities a more flexible toolkit to ensure that failing banks are able to exit the market in an orderly fashion, making the european banking system more resilient to shocks. to be able to apply these tools in practice, it is crucial to have access to adequate funding, including from existing industry - funded pools such as deposit guarantee schemes. in addition, we need further progress with regard to the third pillar, a european deposit insurance scheme that would ensure high and uniform levels of depositor protection. this would increase the resilience and integration of the european banking system. completing the banking union and building a genuine capital markets union should go hand - in - hand. financing the green transition and innovation requires both bank and capital market finance. moreover, well - functioning capital markets can foster crossborder activities by banks and ensure better risk sharing. conclusion let me conclude by underlining that accountability to european institutions is essential for us. supervisors need to continuously and transparently connect with all stakeholders to explain what risks we see and how we are addressing them. building on what we have achieved together, i look forward to working with the

further towards our target, since it will increasingly dampen demand. taking into account our updated assessment of the inflation outlook, the dynamics of underlying inflation, and the strength of monetary policy transmission, the governing council decided yesterday to raise interest rates again by 25 basis points. that means we have now raised rates by 400 basis points in less than a year. this is testament to our determination to ensure that inflation returns to our 2 % medium - term target in a timely manner. 1 / 2 bis - central bankers'speeches we also confirmed that our future decisions will ensure that the key ecb interest rates will be brought to levels sufficiently restrictive to achieve a timely return of inflation to our 2 % medium - term target and will be kept at those levels for as long as necessary. in other words, we still have ground to cover. barring a material change to our baseline, it is very likely that we will continue to increase rates at our next policy meeting in july. thereafter, we will continue to follow a data - dependent approach to determining the appropriate level and duration of restriction. in particular, our interest rate decisions will continue to be based on our assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation, and the strength of monetary policy transmission. the governing council also confirmed that it will discontinue the reinvestments under the asset purchase programme as of july 2023. 2 / 2 bis - central bankers'speeches