does the willingness of the savings banks to share responsibility for network cooperation. this is a question of partnership. another question that has to be answered is that of consolidation and integration. theoretically, there are two possible options. – the first option would be a horizontal integration of landesbanken. the success of this would essentially hinge on the cost savings and synergies that can be achieved. – the second option would be a vertical integration with savings banks of the region. from a financial stability perspective, what is important in the first option is that the portfolios usefully complement each other and that the overall risks become perceptibly smaller. under no circumstances should a structure be created that is so large that the systemic risks ultimately become even bigger. in the case of vertical integration, there is the inherent risk of cementing existing structures. business lines that are unsustainable in the long term would perhaps have to be supported by the affiliated savings banks. consolidation makes sense in order to reduce surplus capacities. i call, here and now, on all parties involved to do this. 5. conclusion certainly, at this point a central banker should not go further. he can, however, point to the conditions which are essential for financial stability. the decisions themselves ultimately have to be taken by those responsible for them. but one thing is clear : it is time to act. the situation is a pressing one. or as the roman philosopher seneca put it : “ fate leads the willing and drags along the reluctant. ” thank you for your attention. bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches

##banken refocus on the core business. total assets are to be reduced overall, riskweighted assets are to be scaled back and certain participating interests as well as non - core activities are to be sold. to that extent, current developments reflect progress in consolidation, which is most readily apparent where the european commission has made government rescues subject to requirements as part of the eu state aid procedures. other adjustments are still outstanding. as we see it, the parts that are sustainable finally have to be put together so as to create enduringly viable institutions. we must be able to perceive whatever holds the future landesbanken world together in its inmost folds. the fact that some institutions did not seize the opportunity to apply for additional capital from financial market stabilisation fund ( soffin ) by the end of last year in order to equip themselves for restructuring is regrettable given the necessary adjustments to the new capital requirements and is, unfortunately, a continuation of the tradition of deferring or failing to implement adjustments that are needed. since the beginning of this year, federal funds have generally been available only from the restructuring fund under the conditions imposed by the restructuring administration. such a regime would certainly not be a “ walk in the park ” for those concerned. the restructuring act ( restrukturierungsgesetz ) nevertheless provides the opportunity to protect the systemic parts of an institution without escalating the “ too big to fail ” problem. it helps to prevent contagion and, at the same time, strengthens the responsibility of the owners and / or supporting organisations. both aspects are of crucial importance for financial stability. with regard to the second pillar of resilience – profitability – the banking sector as a whole can be divided into “ winners ” and “ losers ”. overall, commission business at the big german banks has benefited from a growing demand for banking services, but even here there are differences. those banks whose room for manoeuvre was limited by balance sheet shrinkage and restructuring saw a fall in their net commission income, one reason being that higher commission had to be paid for guarantees provided. interest business as a whole has been a major pillar of income since the outbreak of the financial crisis. lower short - term interest rates have helped in this respect. in the case of landesbanken, it supported net interest income in the third quarter of last year. with regard to the trading results, particular attention should be paid to how many risks have been