diverse talent to draw on in the future, some of it in this room today. can i encourage you to join us and so to make this ‘ modern central bank ’ even better. i ’ d like to thank benjamin king for his assistance in drafting these remarks. i would also like to thank renee horrell, matthew waldron, chiara punzo, niki anderson, andrew bailey, kristina bluwstein, fabrizio cadamagnani, geoff coppins, lee foulger, andrew hauser, grellan mcgrath, huw pill, nyssa roberts, martin seneca, sophie stone, danny walker and chris yeates for their helpful input and comments. the views expressed here are not necessarily those of the financial policy committee. references aikman, d., j. bridges, s. hacioglu hoke, c. o'neill, and a. raja. ( 2019a ). “ credit, capital and crises : a gdp - at - risk approach ”. bank of england staff working paper no. 824. aikman, d., p. chichkanov, g. douglas, y. georgiev, j. howat and b. king. ( 2019b ). “ systemwide stress simulation ”. bank of england staff working paper no. 809. allen, w. a. ( 2022 ). “ models of central banking and the organisation of the bank of england ”. available at ssrn 4283767. altunbas, y., l. gambacorta and d. marques - ibanez ( 2014 ). “ does monetary policy affect bank risk? ”. international journal of central banking, 10 ( 1 ), 95 - 136. aramonte, s. and p. rungcharoenkitkul ( 2022 ). “ leverage and liquidity backstops : cues from pension funds and gilt market disruptions ”. bis quarterly review, december. bailey, a. ( 2022a ). “ the economic landscape : structural change, global r * and the missinginvestment puzzle ”. speech at the official monetary and financial institutions forum. bailey, a. ( 2022b ). “ monetary policy and financial stability interventions in difficult times ” speech at the g30 37th annual international banking seminar, washington, d. c. balls, e., j. howat and a. stansbury ( 2018 ),

bank restructuring is progressing as scheduled. in june the evaluation exercise was completed, enabling an estimate of the capital needs for the whole system to be made, and confirming that they were clearly below €100 billion ; at the end of august the royal decree - law on credit institution restructuring and resolution was approved, constituting a new code in this area ; at the end of september the exercise was completed, enabling the capital needs for each of the banks participating in the exercise, which accounted for 90 % of the spanish banking system, to be determined ; and, last thursday, the decree which will regulate the activity of the asset management company for assets arising from bank restructuring ( sareb ) was approved, another key step in the implementation of the programme agreed with the european commission. the analysis concluded in september enabled the classification of banks for restructuring purposes to be confirmed. previously, the banks without additional capital needs had already been determined ( group 0 ) as had the banks controlled by the frob ( group 1 ), to use the terminology of the memorandum of understanding ; this classification was completed, dividing the other banks with capital needs into : a ) those with plans to achieve the capital levels required using their own means ; and b ) those which will require state aid to do so. the latter were requested to provide restructuring plans which are currently being studied. at the end of this month, it is planned to approve the restructuring plans of the banks in group 1 ( those controlled by the frob ), and those of group 2 ( the other banks which will require state aid ) will foreseeably be approved before year - end. the restructuring plans envisage the transfer of assets to the asset management company, which will become operational in december, and the recapitalisation of banks which need it. each bank will bis central bankers ’ speeches have a schedule for implementing the measures that it must adopt, and these are expected to be completed in the first quarter of 2013. conclusions the state budget for 2013 represents a substantial effort in terms of austerity. the intended fiscal adjustment is certainly very ambitious, given the ongoing recessionary setting for public finances next year. central government efforts would be insufficient if not accompanied too by the adjustment to which regional and local government have committed. from the macroeconomic standpoint, some data show progress is being made in rebalancing the spanish economy. the bulk of the correction has already been made by the current account and it is close to balance in 2012 which, foresee