potential cost cuts and improvements in efficiency can be seen mainly in mergers between banks from the same country, thanks to the elimination of the doubling - up in branches and central services. in this connection, the radical consolidation of the spanish banking system since 2009 is widely known. to give you some figures, there has been a reduction of over 30 % in the number of banks. the number of offices has fallen by over 40 % ( some 20, 000 ) while personnel figures have declined by more than 30 % ( 90, 000 fewer staff ). yet given the extremely competitive environment in place, i wish to stress that the map of national mergers may not yet be complete. this is particularly so when the reduction of structural costs is one of the few levers available to improve the profit and loss account. for most cross - border mergers, the economic rationale is more difficult to justify, although there will be potential gains in competitiveness for those banks with a business model that allows vertical savings. however, as the ecb points out in its study, there is another aspect to consider in banking consolidation alongside potential cost cuts : the improvement in geographical diversification, from the standpoint both of revenue and of risks borne. i fully share the conclusion of the study. it is true that cross - border mergers offer the advantage of increasing diversification. that no doubt improves resilience at times of stress and shores up revenue in terms of greater stability and recurrence, as was highlighted during the past crisis. in this respect, i believe that the lack of explicit acknowledgement of diversification as a risk - reducing factor may be restricting this type of cross - border integration. some profound reflection across europe and internationally may be advisable on the regulatory treatment of diversification, and its potentially beneficial effect on banks ’ risk profile. in any event, it should be stressed that mergers are always long and complex processes and, on many occasions, they entail more problems than those initially envisaged. also, national barriers persist that hamper mergers of banks from different jurisdictions. persistence of national barriers. admittedly, despite progress, specific cultural, institutional and regulatory obstacles persist that hamper the creation of a truly european banking market. reluctance to eliminate these obstacles contributes notably to the ring - fencing of national banks, which restrict or even prevent the free movement of capital or liquidity across the different euro area jurisdictions. in my view, after significantly reducing risks in the financial sector, it is time to do away with

economic and monetary union today is like a house that was built over decades but only partially finished. when the storm hit, its walls and roof had to be stabilised quickly. it is now high time to reinforce its foundations. ” this quote illustrates very clearly how the eu reform process often is. it is amid the storm that political pressure rises to undertake reforms that help avoid the house come crashing down ; but we agree that the best time to carry out this type of work is when the sun is shining. when assessing our capacity to face future financial crises, we should not forget that the institutional framework is not yet complete. admittedly, the foundations are not fully and firmly in place, and we should avoid lapsing into complacency. we cannot forget that, as the memories of the crisis fade, the political pressure to undertake reforms also tends to wane. thank you. https : / / nextcmu. eu / wp - content / uploads / 2019 / 10 / the - next - cmu - hl _ do. pdf the report also suggests re - naming the project “ savings and sustainable investment union ", which emphasises the role of funding in promoting the transition to a more sustainable economy. 10 / 10