of spanish banks. in the current scenario of very low interest rates, the loan - deposit gap is at historically very narrow levels ( around 1 % ). where the interest rate spread is so tight, the sustainability of net interest income over time needs an adequate level of activity to offset, by volume, the scant contribution of price to the income statement. but this is not the case at present, as banking activity levels are still low, and precisely this is the second source of pressure on the income statement. the third one is the significant volume of non - productive assets ( npls and foreclosures ) remaining on banks ’ balance sheets although, as i mentioned earlier, the data shows a positive trend with a significant decline over the last two years. in a period of far - reaching changes in the banking sector, it is important for banks to improve their efficiency, so as to remain viable competitors. banks could do this through various means, for example redesigning their networks, redefining their capacity and efficiency, enhancing their geographical diversification, and increasing specialization in certain market segments. from this perspective, a number of analysts and market participants expect a greater degree of consolidation in the spanish banking sector. the start - up of the single supervisory mechanism and the gradual disappearance of barriers against banking integration at the european level facilitate a new operational framework for banks, when defining their strategies through the eurozone and the area covered by the single supervisory mechanism. bis central bankers ’ speeches conclusions : growth perspectives now, to conclude : according to most analysts, public and private alike, the spanish economy is expected to continue growing at sustained rates in the medium term. in particular, gdp might increase at a rate around 2. 8 % in 2016 according to the consensus. this figure is well above the estimated rate for the euro area average. however, this central scenario is not free from risks. the international environment has not only deteriorated recently, but it has also become more vulnerable due to the extent of the slowdown of the global economy - in particular, of some emerging economies, as far as they may affect world growth and international tradeand the evolution of commodity prices, in a context where there are doubts about the reaction of markets to the normalization of us monetary policy. on the spanish domestic political front, it is obvious that the uncertainty regarding the formation of a new government may affect investment and consumption decisions. so far, the impact on the spanish financial markets has been limited. in any case, i take it

. that requires striking a suitable balance between measures to minimise the probability of the bankruptcy of systemic institutions – by imposing supplementary capital buffers – and, in the case of more complex institutions, the design of contingency action plans which ensure orderly resolution if a state of non - viability is reached. this is, in essence, the content of the work undertaken recently by the financial stability board. in any event, the essential ingredient of orderly bank resolution schemes is the specification of a bail - in arrangement establishing a clear order of priority for the claims of shareholders and the various types of creditors that can be activated before insolvency proceedings are commenced and before any state aid is made available. the credibility of this framework will favour the appropriate perception of the risk effectively entailed by each liability instrument and will minimise the bill to be borne by taxpayers to prevent the disorderly winding - up of banks. in the european arena, we have progressed greatly in the definition of a regulatory framework for the resolution of non - viable banks. there is already political agreement on a proposed recovery and resolution directive which will establish a clear burden - sharing system for insolvent banks and thus minimise the possible cost of rescue for taxpayers. bis central bankers ’ speeches this directive is also a first step in the creation of a single resolution mechanism to supplement the nascent single supervisory mechanism which will enable a real banking union to be set up in europe. this project is essential to overcome the problems of fragmentation which still beset european markets and which cause the perception of risk associated with banks ’ liability instruments to differ depending on the jurisdiction in which they operate. however, as you know, to ensure that non - viable banks are resolved in the same way in the various member states of the euro area, it does not suffice to have a set of common regulations ; rather, it is necessary to have a single resolution authority to ensure that the regulations are applied uniformly in all countries. similarly, the financial support needed for orderly bank resolution must be available under similar conditions whenever required. clearly the lack of a full european resolution mechanism ( including uniform rules, a single authority and a common fund ) would limit the effectiveness of the single supervisory mechanism. in that case, the single supervisory mechanism would have to resort to a complex system of interaction with the national authorities ( which would have to continue using their resources to cover the fiscal effects of the problems of non - viability detected by the supervisor ) to ensure financial stability. in this