with a marginal decline in rates on deposits has been achieved at the expense of financial institutions ’ profits. this point is closely related to the first one, in that the policy effects on lending rates will also depend on financial institutions ’ lending attitudes. impact on financial intermediation let me put this in more general terms. in assessing the effectiveness of the negative interest rate policy, the potential impact on the financial intermediation due to its influence on the bis central bankers ’ speeches profits of financial institutions needs to be taken into account. considering that the profits affect the soundness of financial institutions in a cumulative manner, the impact can vary depending on the duration of the policy. generally speaking, financial institutions raise short - term funds and invest them in long - term assets as their basic business model. given that the rates on deposits – which are the main funding tools – rarely become negative, the decline in yields throughout the entire yield curve or the narrowing of the spread between short - and long - term yields will lead to smaller spreads between deposit and lending rates, thereby negatively affecting the profits of financial institutions. for japan in particular, the impact of the negative interest rate policy on the profits of financial institutions tends to be relatively large, due to such factors as the amount outstanding of deposits far exceeding that of lending, and to the spreads between deposits and lending rates already being extremely small following prolonged competition among financial institutions. as long - term and super - long - term rates have declined significantly since the introduction of the negative interest rate policy, the rates of return on investments of insurance and pension products are expected to decline. under these circumstances, the sales of some saving - type products are suspended. some business firms have revised down their profit forecasts due in part to the increase in the net present value of retirement benefit obligations. although direct impacts of these developments on the entire economy may not be substantial, we should take account of the possibility that such developments can affect people ’ s confidence by causing concerns over the sustainability of the financial function in a broad sense, thereby negatively affecting economic activity. in sum, in proceeding with “ qqe with a negative interest rate, ” the bank should make an appropriate policy judgment by taking account not only of its powerful impact on the yield curve but also its impact on the financial intermediation in a broad sense. needless to say, there is still ample space for further cuts in the negative interest rate and for an increase in size in the “ quantity ” dimension. the bank has a

fabio panetta : protecting the european financial sector - the cyber information and intelligence sharing initiative introductory remarks by mr fabio panetta, member of the executive board of the european central bank, at the fourth meeting of the euro cyber resilience board for pan - european financial infrastructures, frankfurt am main, 27 february 2020. * * * it is a pleasure to welcome you back to frankfurt. as you may know, i recently became responsible for market infrastructures and payments at the ecb. as this includes the ecb ’ s work on the cyber resilience of financial market infrastructures, i have taken over chairmanship of the euro cyber resilience board for pan - european financial infrastructures ( ecrb ). i would like to take this opportunity to thank my predecessors for their efforts in taking forward the work of the ecrb. i look forward to following in their footsteps and contributing to the excellent work being undertaken on cyber resilience at the european level. protecting the integrity of the financial system, and maintaining confidence in it, is critical. specifically, financial market infrastructures are crucial for intermediation between market participants and end users. they are critical for the everyday livelihood of european citizens, for instance by transmitting salary and pension payments. they are also vital for the functioning of the financial system and the financing of the real economy, as they settle market transactions through a web of settlement banks, clearing houses, settlement systems and custodians. cyberattacks are already used to harm companies and to interfere with national and international politics. cyberattacks against financial market infrastructures would undermine confidence in the financial system, with repercussions on the economy as a whole. fending off these attacks is therefore a matter of european security. the range of motivations for compromising the financial sector includes financial gain, a desire to create havoc and disruption, and meticulously planned espionage. in any of the given scenarios, the impact can be severe. cyberattacks can threaten financial stability by disrupting the interconnected and interdependent operational network and its critical nodes. cyberattacks can result in the corruption or loss of data or the outright loss of systems and critical infrastructure. cyber risk is a danger which has the potential to trigger a systemic crisis. 1 in financial terms, while the total costs of cyber incidents are hard to establish, industry estimates range from usd 45 billion to usd 654 billion for the global economy in 2018. 2 according to