to regard the decision of the mediation panel as binding. the problems i have just set out highlight the crucial importance of a principle which the founders of the eurosystem were keen to safeguard : the independence of the ecb, and of its governors. if the governments decide to mandate the ecb with additional tasks, this basic principle still applies, as long as the treaty is not changed. thus, if the ecb is mandated with banking supervision, the governing council of the ecb will be the one deciding on all relevant supervisory matters, as long as there are no changes in primary law. this implies that – following a common principle of reason – those responsible for a decision need to be able to shape that decision. bis central bankers ’ speeches 4. conclusion let me sum up my main points. the single supervisory mechanism is a good step forward towards improving the european institutional framework. there is no doubt about that. however, the envisaged institutional set - up needs to take into account a basic feature of the eurosystem – the independence of the ecb and of the members of the governing council. hence i am not only looking forward to working with my supervisory colleagues within the ssm, but also to reading the final regulation governing the new system. thank you for your attention. bis central bankers ’ speeches

andreas dombret : interest rate reversal in the united states and german banks introductory statement by dr andreas dombret, member of the executive board of the deutsche bundesbank, at the annual meeting of the verein fur socialpolitik, munster, 17 september 2015. * * * ladies and gentlemen the british rock band the alan parsons project charted in 1978 with a single entitled “ what goes up... ”, the first two lines of which read as follows : “ what goes up, must come down / what must rise, must fall ”. these words of wisdom are also worth heeding in the financial markets – indeed, they ’ re the secret of any successful trader. but interestingly, the precise opposite also holds true in the financial markets. so, we could equally say : “ interest rates that fall, must rise again. ” but for now, the euro area is still in the midst of a protracted spell of very low interest rates. it goes without saying that this low - interest - rate environment is making itself felt on banks – particularly on those whose business models are very reliant on interest income. so it ’ s not surprising that many a german credit institution is struggling with weak earnings. that ’ s a topic which has been on the agenda for quite some time now. incidentally, we will be getting a better idea of how german banks are coping with the currently low level of interest rates next week – on 18 september, to be precise, when the bundesbank and bafin will be releasing the findings of a joint survey on the low - interest - rate environment. what can banks do? in a nutshell, banks should act on the meagre state of their earnings at present by reflecting on their business models and tapping fresh sources of income. while the alan parsons project might have a point, living off ever - diminishing resources and simply sitting tight until interest rates reverse isn ’ t what i would consider the right course of action. that ’ s because interest rates in the euro area are likely to remain very low for some time to come – the low rate of inflation, the modest economic outlook and the ecb ’ s forward guidance suggest as much. the picture is a different one across the pond. for all extents and purposes, the united states already began edging towards the monetary policy exit back in may 2013. that was when the us federal reserve announced its plans to “ taper ” its bond purchase programme.