##ohoe welcomes banking initiative that aims to rebuild trust in the industry, december 31, 2017. 13 federal reserve bank of new york, workshop on culture measurement and assessment, june 21, 2017. 14 financial stability board, strengthening governance frameworks to mitigate misconduct risk : a toolkit for firms and supervisors, april 20, 2018. 15 federal reserve board, federal reserve board issues joint statement encouraging depository institutions to explore innovative approaches to meet bsa / anti - money laundering compliance obligations and to further strengthen the financial system against illicit financial activity, december 3, 2018. 16 rob gruppetta, ai and financial crime : silver bullet or red herring?, november 11, 2018. 6 / 6 bis central bankers'speeches

improved education and training, as well as lifelong learning. however, investment in human capital in europe is still clearly inadequate for a “ knowledge - intensive ” economy. europe still needs to enhance the quality and efficiency of its schools and universities as well as to increase incentives for all relevant parties, including firms, to invest in human capital. in this connection, let me now focus more specifically on the financial services sector which is, within the services sector, probably the most important and, in some sense, problematic component. for the ecb, financial integration is essential, given its relevance to the conduct of the single monetary policy. and it is gradually taking place across europe, with considerable progress having already been made. the degree of integration, however, varies across market segments, and integration is generally more advanced in those market segments which are closer to the single monetary policy. while the euro area banking markets for wholesale and capital market - related activities have shown clear signs of increasing integration since the introduction of the euro, the retail banking segment has remained more fragmented, leaving european firms and consumers unable to take full advantage of economic and monetary union ( emu ) and the single market. the current extraordinary conditions in financial markets should provide a unique opportunity for overhauling the architecture of financial markets not only worldwide, but also within the eu and emu. many would argue that embarking on such reforms is probably easier said than done. and european policy - makers, notably in the euro area, seem to take for granted that the electorate will punish them for bold reform in product and labour markets. this may explain why progress in the euro area has been comparatively limited. however, a recent paper from the commission ( buti et al. 2008 ) 16 suggests that fear of electoral backlashes may be unfounded. moreover, as i argued earlier, without reforms the economic costs in terms of output and job losses will be increased, and monetary policy will be forced, sooner or later, to react more forcefully to continued upward price pressures. renewed efforts to raise productivity – also in the services sector – can reduce inflationary pressures, raise real income and strengthen the resilience of our economies to the global shocks in the financial system and commodity prices which we are experiencing. 5. concluding remarks ludwig erhard was prized for his courageous policies, which were based on the principles of free competition, flexible prices and open markets. on many occasions he stressed the importance of price stability. in my view, these principles still act as guideposts