a limited impact on the financial sector more broadly. from a macroprudential policy perspective and against a background of headwinds and uncertainty, it is crucial that the existing requirements for releasable capital buffers are maintained, or in some countries increased, and that adequate borrower - based measures are implemented as required. it is important that key jurisdictions are making progress in implementing basel iii. a full, faithful and timely implementation of basel iii is crucial, as strong regulation and supervision ensure that banks remain safe and sound. risks in the non - bank financial intermediation ( nbfi ) sector remain elevated, despite some rebalancing towards higher - quality assets. asset price corrections and market volatility, as well as macroeconomic and geopolitical uncertainty, could trigger outflows from open - ended investment funds or margin calls for investment funds, insurance companies and pension funds. these dynamics would increase the likelihood of forced sales, which could negatively affect the markets in which non - bank financial intermediaries invest. additionally, parts of the nbfi sector are highly leveraged, which could amplify liquidity shocks to the wider financial system. this underlines the need to strengthen the nbfi policy framework, including from a macroprudential perspective, in an internationally coordinated manner. 3 / 4 bis - central bankers'speeches international cooperation geopolitical tensions are increasingly giving rise to economic and financial fragmentation and pose a significant risk to global prosperity, with trade flows already visibly decoupling along lines of geopolitical influence. so far, this decoupling has been limited to specific sectors, such as energy and key advanced technologies. ecb analysis suggests that trade fragmentation could result in global gdp losses ranging from nearly 6 % in a scenario of higher trade barriers only being erected for strategic products, to 9 % in a more severe scenario of full decoupling. trade fragmentation could lead to renewed inflationary pressures globally, not only because of increased production input costs but also on account of reduced diversification opportunities. overall, this would make it more challenging for central banks to ensure price stability. it is therefore crucial that legitimate concerns about security and supply chain resilience do not lead to a spiral of protectionism. multilateral cooperation is more important than ever if we are to preserve the unparalleled achievements in global growth and poverty reduction of recent decades, and securing global peace is a precondition for economic prosperity. with the imf marking its 80

steps we are taking to address climate change within the bounds of our mandate. i now stand ready to take your questions. annexes 26 september 2022 introductory statement in three charts english 1. see press release, ecb, frankfurt, 21 july 2022. 2. see eurobarometer 97, summer 2022. 3. see letter from the ecb president to irene tinagli, chair of the committee on economic and monetary affairs of the european parliament, on further steps to incorporate climate change into the ecb ’ s monetary policy operations, ecb, 4 july 2022.