enhanced. the ecb will ensure that strong supervisory standards are applied in a homogenous way across the whole euro area. in addition, given a stronger consolidated perspective, efficiencies with respect to the allocation and transfer of intragroup capital and liquidity across the euro area can be enhanced. this will contribute to reducing market fragmentation, fostering financial integration and reaping the full benefits of the single market. we have been experiencing a low interest rate environment for a long time. what does this mean for banks and how will they be able to deal with the gradual exit from the accommodative monetary policy? rates will remain at the current levels for an extended period of time. by the time we start exiting this environment, the recovery will be more robust, and banks, thanks also to the banking union, will be in a better position than they are today. as a result of the crisis, several bank mergers and acquisitions have taken place in greece. do you believe that there is also a need for greater concentration within the sector at the european level? do european banks exhibit excess capacity? bis central bankers ’ speeches the consolidation of the banking sector in greece was a natural consequence of the crisis. the four core banks acted as consolidators, acquiring the good parts of the resolved nonviable institutions. i don ’ t have specific views on banking consolidation at the euro area level because i believe that it should be the outcome of a market - based process. i expect the banking union to improve the efficiency of the industry by creating a level playing field, by exposing unsustainable business models and by making public support for banks more difficult. bis central bankers ’ speeches

ecb and the european banking authority ( eba ) could trigger a new round of uncertainty? what do you think the results of this exercise will be? it would be inappropriate to speculate about the outcome of the exercise which is still ongoing. as i said, the outcome of the ecb ’ s asset quality review and the eba ’ s stress test will be published in the second half of october. the comprehensive assessment will significantly increase transparency as regards the underlying quality of banks ’ assets in a consistent manner across countries. it will therefore make a substantial contribution to reducing market uncertainty about banks ’ soundness. what does the banking union mean for european citizens? what does it mean for the banking system? will the banking union be meaningful? the banking union seeks to address some of the main causes of the financial crisis, such as the weak oversight of some banks and the link between banks and sovereigns, which amplified the crisis. by creating a level playing field and making sure that the control of banks bis central bankers ’ speeches is at arm ’ s length from local politics, the banking union will lead to a more resilient and efficient banking system. this in turn will benefit the economy and, consequently, every european citizen. it will also improve the transmission of the ecb ’ s low rates to companies and households. finally, banking union comes with new rules for managing banking crises, which will make sure that it is the investors who must pay first of all for errors committed by banks, and taxpayers only as a last resort. for countries like greece in particular, what does the banking union mean for the business and banking sectors? once the fragmentation of the euro area banking system has been dealt with, it is clear that interest rates will become more even throughout the euro area. this means that the cost of money for greek businesses will be reduced, allowing more room for investment and new business initiatives. this in turn will help reduce unemployment. that said, i am not suggesting here that interest rates should be equal across the entire euro area. this was the situation before the crisis and it led to imprudent investment decisions. the greek crisis has challenged the euro area ’ s resilience and cohesion. do you think that the crisis of the euro is now over? the situation in financial markets has significantly improved over recent years ; risk premia on sovereign bonds of the so - called stressed countries have declined substantially over the last two years. this is, in particular, a result of both the