, and reviews basel core principles, bis press release, 23 march 2023. valuations are based on the msci european quarterly property index. see recommendation of the european systemic risk board of 1 december 2022 on vulnerabilities in the commercial real estate sector in the european economic area ( esrb / 2022 / 9 ). episodes with great care because vulnerabilities in non - bank financial intermediaries can result in procyclical selling behaviour that would amplify asset price falls. in this context, non - bank financial institutions need to ensure that their risk management practices adequately reflect the risks they might face. for example, investment funds need to monitor and address possible excessive liquidity mismatches or leverage. insurers need to pay close attention to market risk. they also need to consider that margin calls on derivative positions or lapses of contracts can expose them to liquidity risk. central counterparties ( ccps ), clearing members and their clients need to be mindful that the reduction in counterparty credit risk brought about through regular margining can result in liquidity risk being transmitted through the financial system. they need to monitor derivative exposures, and address concentration risk and procyclicality in margining practices along the chain of ccps, clearing members and their clients. the esrb has repeatedly noted8 that a lack of tools is hampering authorities ’ ability to address financial stability risks beyond the banking sector. the ongoing review of the prudential rules governing investment funds and insurers provides opportunities for legislators to assign the power to operate such tools to the authorities. and the ongoing review of the rules governing central clearing offers an opportunity to enhance authorities ’ monitoring capacity through better data quality. the esrb has provided extensive input to the these legislative reviews, setting out what it believes is necessary. 9 hybrid risks the esrb has devoted a substantial amount of efforts in recent years to advance our understanding, assessment and macroprudential policy response capacities to the so - called “ hybrid ” risks, in particular, cyber threats and climate risks. 10 as regards cyber risk, at the esrb we are concerned that a major, i. e. systemically relevant, cyber incident has the potential – in a worst - case scenario – to trigger financial contagion and erode public confidence in the financial system. if the financial system is not able to absorb such a shock, financial stability is very likely to be put at risk. this concern led

03. 04. 2018 spain : from recovery to resilience banco de espana - imf high - level seminar luis m. linde governor ladies and gentlemen, let me welcome you to this banco de espana and international monetary fund joint conference devoted to the recent evolution of the spanish economy in the euro - zone and european union context. i would like to thank the international monetary fund, represented here today by david lipton, first deputy managing director, poul thomsen, director of the european department and andrea schaechter, mission chief for spain, for their proposal to organise this conference. the banco de espana was more than pleased to accept, considering it to be very timely and of great interest. as to the title of the conference : “ spain : from recovery to resilience ”, allow me, before going forward, a candid clarification : i can assure you that it is far from our intent to suggest any pessimistic forecast or premonition. the title refers to our economy ’ s resilience in the face of a hypothetical cyclical downturn which, needless to say, we hope will be later rather than sooner. in 2017 spain ’ s economic recovery maintained the strong growth path of previous years, exceeding expectations for the fourth year in a row. in particular, gdp grew by 3. 1 %, meaning that the economy has grown above 3 % for the third consecutive year. strong domestic and external demand pushed gdp up, and the economy has proved quite resilient to uncertainty shocks. the positive behaviour of the economy contributed to and, in turn, was stimulated by the correction of the macro - financial imbalances accumulated during the pre - crisis and crisis periods. such corrections were particularly significant as regards private sector deleveraging, the reduction of unemployment, the progressive absorption of disequilibria in the housing market, and the balancing of the external accounts, not least due to significant gains in competitiveness. looking forward, nonetheless, a number of questions remain open. will this process continue at such a strong pace? under which conditions would the recovery turn into a sustained and prolonged expansion? which are the main vulnerabilities and weaknesses that policy - makers should tackle in order to raise potential growth and the well - being of the population? is the spanish economy, within the eu framework, well equipped to cope with the next cyclical downturn? is the euro area as a whole well prepared? the programme of this conference