##isation of some banks ) and better risk management are also crucial factors, i believe, in addressing the current challenges. but also the strengthening of corporate governance is of utmost importance to avoid excessive risk - taking. in other words, transparency and risk management are important, as i said, but incentives as well! in this sense, the restructuring of some groups of banks may be vital. 11 second, looking into the future, with the crisis behind us, higher bank capital requirements will also play a positive role by reducing incentives for excessive bank risk - taking. 12 on that see iyer and peydro ( 2011 ) and rochet and vives ( 2004 ). see jimenez, ongena, peydro and saurina ( forthcoming ). see morgan ( 2002 ). see cunat and garicano ( 2010 ). see freixas and rochet ( 1997 ) and acharya and richardson ( 2009 ). bis central bankers ’ speeches same subject, we should welcome the changes made to eu and global banking regulations and supervision, both micro and macro - based : for example, the basel iii package of regulations ( level and quality of capital, countercyclical buffers of capital, liquidity ratio. etc ) and the developments in macroprudential supervision with the establishment of the esrb in the eu. concluding remarks changes in the banking sector after the current crisis – at national, eu and global level – can make the spanish banking sector stronger and provide a durable support for the real economy, as happened after the 1970 – 80 crisis. to be specific, changes in the business models and the restructuring of some banks, more and higher - quality bank capital, better risk management, improved transparency and corporate governance, as well as changes in banking regulations and supervision – all these factors will contribute towards sustainable economic growth. however, as necessary as these changes are, they are not enough to bring about a strong and robust improvement in spain ’ s economy, and particularly to create jobs and boost productivity. to achieve these objectives, further progress must be made : in consolidating public finances, also to reduce the possible negative spillovers of the sovereign debt crisis to the banking sector ; in liberalising product and factor markets, especially now the labour market with respect to “ negociacion colectiva ” ( collective bargaining ). in improving the education system at all levels – it is critical to raising productivity over the medium term and, therefore, to improving welfare.

the post - pandemic monetary policy stance is appropriately calibrated in order to ensure timely convergence to our medium - term inflation aim. to these ends, the ecb governing council stands ready to adjust all of its instruments, as appropriate. especially in an environment of low inflation and low interest rates, monetary and fiscal policies have the potential to reinforce each other. in particular, in relation to the price stability mandate, the scale of the monetary policy adjustment required to neutralise the negative pandemic shock to inflation dynamics and sustain the subsequent convergence to the inflation aim depends on the extent of the fiscal support for the economic recovery. all euro area countries have taken significant fiscal measures in response to the pandemic crisis. over the near - term and medium - term, national governments will need to continue supporting their economies to recover from the severe pandemic shock. the recently - agreed €750 billion eu recovery fund – the next generation eu initiative – puts in place a shared budgetary instrument that both complements and supports national fiscal actions. an ambitious, high - quality and coordinated fiscal stance is central to securing a strong recovery across the euro area and constitutes a vital complement to the support provided by monetary policy. finally, the emerging lessons from the policy response to the pandemic shock will also feed into our monetary policy strategy review. the strategy review will be an important focus for our work over the next year. [ 1 ] i am grateful to ine van robays and leopold von thadden for their contributions to this speech. [ 2 ] i discussed the ecb ’ s response to the pandemic crisis in more detail in a recent speech. see lane, p. r. ( 2020 ), “ the ecb ’ s monetary policy response to the pandemic : liquidity, stabilisation and supporting the recovery ”, 24 june. [ 3 ] since the ecb was already an active purchaser of both sovereign and private - sector securities, the pepp could be rolled out quite quickly. on 12 march, the ecb had already expanded the size of its long - established asset purchase programme ( app ) with an additional eur 120 billion allocated for the rest of 2020. the 18 march launch of the pepp was in recognition that a temporary and flexible programme was better suited to respond to the exceptional nature of the pandemic shock, rather than just relying on a mechanical expansion of the app. [ 4 ] see also lane, p. r. (