like to reflect on the future of supervision and the changes we need to implement to adapt it to the new age. back in september 2022 the ecb considered it necessary to assess the functioning of the ssm, and appointed a group of independent external parties to prepare a report with proposed improvements. published in april 2023, 4 the report contains a wide range of proposals, and reforms to supervisory tasks have since begun to be implemented. the most noteworthy reform aims to establish a more risk - based approach to supervision. this means that the inspection teams will have more flexibility in flagging the areas of focus for their supervisory activity. the aim is not to conduct a global and comprehensive review of the banks every year, but rather to focus resources on the most significant risks at each bank. this will help make more efficient use of the ever - scarce resources available. although this new approach will entail risk - taking by the supervisor ( as some areas will be left outside the supervisory perimeter for some time ), it is a risk we must take if we are to become more efficient, focused and, at the same time, more flexible. https : / / www. bankingsupervision. europa. eu / ecb / pub / pdf / annex / ssm. pr230417 _ annex. en. pdf. flexibility and agility are essential in such turbulent and evolving times, and we must be able to react swiftly to any new scenarios that could affect the financial system. although the events of recent years have demonstrated how, as supervisory authorities, we have been able to adapt our activity, priorities and procedures to the circumstances of any given moment, this quality needs to be reinforced and incorporated more explicitly into our methodology. in this respect, i consider that the suptech tools we currently have and the ones we will develop over time will prove to be highly efficient in the early detection of weaknesses and areas for improvement in banks ’ management and their risk profiles. this will improve the efficiency of supervision. another key element we need to reinforce is the implementation of supervisory measures. unless the corrective measures are duly complied with, any problems or shortcomings detected will not be properly addressed. this is another lesson learned from the crisis at mid - sized us banks in spring 2023. such tools should be governed by the principle of proportionality and able to adapt to the seriousness of the shortcomings they seek to address. moreover, the deadlines set for implementing the corrective measures should also be

and monetary policy – are generating new patterns of funding, new players and changes in capital flows across global markets. those issues will be reviewed in the initial session. as i mentioned before, the euro area has to deal with a severe crisis which has led to the fragmentation of the european financial system. while there are signs of a certain reversal in this process, a failure in this respect would be particularly harmful for the european project, since integration is at the core of the european union itself. the policy actions of the ecb and other european authorities, including the decisive drive towards a banking union, have been able to overcome or dissipate the worst fears, but the road ahead is still long and difficult. finally, the role of central bankers should be highlighted in this new context. we are big players in the financial arena, both from the regulatory and monetary policy standpoint ; and the framework for our actions – and reactions – must necessarily change and adapt to the new environment. the renewal of the set of instruments to address the price stability bis central bankers ’ speeches mandate, be it in a situation of low growth, as happens to advanced economies, or in a situation of large capital inflows, as happens to emerging market economies, is one aspect of that change. the need to take on board financial stability considerations is another aspect widely discussed. you will devote the final part of the day to this quest. and i do not want to take more time out of the tight agenda you will follow now. thank you very much for your attendance to this conference. i wish all of you and excellent day and a good discussion. bis central bankers ’ speeches