klaas knot : mamma mia, here we go again? lessons from silikon valley bank and credit suisse speech by mr klaas knot, president of the netherlands bank, at the eurofi high - level seminar 2023, stockholm, 28 april 2023. * * * hello everyone. yesterday was king's day in the netherlands. the day we celebrate the birthday of our king. having a monarchy is one of the great many things the dutch and the swedes have in common. our king's day is a national holiday with flea markets on every square, music and beer in the high streets, and the entire country dressed up in orange to celebrate. and every year i think to myself : " mamma mia, here we go again. " this thought also crossed my mind a few weeks ago, when the most recent episode of market turmoil started – with the failure of silicon valley bank and the fall of credit suisse. but are we actually'going again '? alfred nobel provides some wisdom to answer this question. he said : " one can state, without exaggeration, that the observation of and the search for similarities and differences are the basis of all human knowledge. " in saying this, he captured exactly what we need to do in case of turmoil, in case of a new shock to our financial system. of course, every shock is unique. but often, there are similarities. and often, there are differences with previous shocks. and it is up to us to distinguish between them. to draw on lessons learned for what is similar. and to look for new lessons for what is different. we have learned a lot from previous shocks. they allowed us to identify vulnerabilities in our financial system. and we have been able to strengthen our resilience and stability as a result. so far, no shock has been the waterloo of our global financial system. but we need to remain vigilant. we need to remain diligent, in mapping, measuring and monitoring vulnerabilities. old and new. so let's put the super trouper on the most recent episode of market turmoil, and take a closer look at what happened, what vulnerabilities were exposed, and what lessons we can learn from similarities and differences with the past. 1 / 5 bis - central bankers'speeches roughly a month ago, on the other side of the atlantic, silicon valley bank failed. the reason for this was a classic

the last reserve maintenance period of 2017. today ’ s decisions were taken in order to secure a return of inflation rates towards levels that are below, but close to, 2 % and thereby to anchor medium - term inflation expectations. the latest staff projections incorporate the favourable financial market developments following our last monetary policy meeting. they still indicate continued downside risks to the inflation outlook and slightly weaker inflation dynamics than previously expected. this follows downward revisions in earlier projection exercises. the persistence of low inflation rates reflects sizeable economic slack weighing on domestic price pressures and headwinds from the external environment. our new measures will ensure accommodative financial conditions and further strengthen the substantial easing impact of the measures taken since june 2014, which have had significant positive effects on financing conditions, credit and the real economy. today ’ s decisions also reinforce the momentum of the euro area ’ s economic recovery and strengthen its resilience against recent global economic shocks. the governing council will closely monitor the evolution in the outlook for price stability and, if warranted, is willing and able to bis central bankers ’ speeches act by using all the instruments available within its mandate in order to maintain an appropriate degree of monetary accommodation. in particular, the governing council recalls that the app provides sufficient flexibility in terms of adjusting its size, composition and duration. let me now explain our assessment in greater detail, starting with the economic analysis. euro area real gdp increased by 0. 3 %, quarter on quarter, in the third quarter of 2015, following a rise of 0. 4 % in the previous quarter, most likely on account of a continued positive contribution from consumption alongside more muted developments in investment and exports. the most recent survey indicators point to ongoing real gdp growth in the final quarter of the year. looking ahead, we expect the economic recovery to proceed. domestic demand should be further supported by our monetary policy measures and their favourable impact on financial conditions, as well as by the earlier progress made with fiscal consolidation and structural reforms. moreover, low oil prices should provide support for households ’ real disposable income and corporate profitability and, therefore, private consumption and investment. in addition, government expenditure is likely to increase in some parts of the euro area, reflecting measures in support of refugees. however, the economic recovery in the euro area continues to be dampened by subdued growth prospects in emerging markets and moderate global trade, the necessary balance sheet adjustments in a number of sectors and the sluggish pace of implementation of structural reforms. this