environment, and in the face of adversity, caution is key, and risks must be very carefully managed. second, regardless of whether the world is topsy - turvy or not, a bank must be capable of turning a profit at any level of interest rates. that may include restructuring its own business model in order to be less dependent on interest rate business. given the challenges facing the sector, supervisors are interested in examining exactly what burdens for the institutions are truly justified in order to avoid placing any further, unnecessary obstacles in their way. and third, i would like to stress that we must not concentrate solely on the interest rate level. we face a number of quite different challenges, too. to name just one example, i expect that the london banks that are likely to move to germany and to frankfurt as a result of brexit will try to poach qualified staff from local banks. to paraphrase helmut qualtinger, an austrian actor, author and cabaret artist : a lot of things get worse by looking at them, but nothing gets better by looking away. 1 to this end, the room for manoeuvre must be recognised and utilised. i now look forward to the other speakers at today ’ s event and am interested to see what issues they will focus on. thank you very much for your attention. 1 helmut qualtinger, austrian actor, writer and cabaret artist ( 1928 - 1986 ). 5 / 5 bis central bankers'speeches

to fruition it is of course key that the risk transfers are genuine ; in other words, it is necessary that the risk is really transferred to third parties. the experience of the crisis showed that this condition was not always met in the past. in this respect, i would like to highlight the important work done by eba in the assessment of the current supervisory practices and the proposals made to further enhance the criteria of significant risk transfer for securitisation in its discussion paper. conclusion let me conclude. the ecb places great importance on the health of the european securitisation market. the abs loan - level initiative has made an important contribution in ensuring a high degree of transparency to enable investors to assess the embedded risks of securitisations. obviously, abs had to become safer after the experience of the great financial crisis, in particular with securitized us - subprime mortgages. regulators and legislators have acted accordingly, and the work has not yet been completed. but we should not throw the baby out with the bath water. instead, the potential of healthy securitizations should be exploited. in line with the commission goal to revive the securitisation market in europe, in order to broaden investment opportunities for investors and boost lending to households and businesses a number of barriers need yet to be overcome. the sts regulation could make an important contribution. much work has already been conducted, nevertheless many important technical standards still need to be finalised and some other uncertainties still remain. in this context, we have to be mindful amid the interdependencies of different pieces of legislation. calibration of solvency ii is essential for insurance companies as investors in securitisation. further clarity of securitisation special purpose entities under the emir framework is needed. finalisation of basel iii may impact securitisation as a means of transferring risk. these are challenges that lie ahead of us. 3 / 3 bis central bankers'speeches