treatment, we need to understand the broader structural trends shaping our economies and societies to supervise with the highest degree of effectiveness. while we may not be medical doctors saving people's lives, our mission as banking supervisors – protecting people's life savings – is also important. so, i think it is useful to draw from the medical field, in particular from the discipline of optometry, for some lessons about how we can save people's economic lives most effectively. after all, in today's complicated world, reducing opacity helps us discern risk in a more clearsighted manner. opticians distinguish between central vision, fringe vision and peripheral vision. peripheral vision is the ability to detect what occurs outside our direct line of sight, beyond 60 degrees. it encompasses everything that can be seen on the sidelines and provides spatial awareness, helping with navigation and balance. improving peripheral vision is crucial for athletes as it enhances reaction times, improves anticipation and 3 / 6 bis - central bankers'speeches reduces the risk of injury. in banking, the periphery of our gaze captures the structural transformations of our societies and economies. think of the acceleration of technological progress, including the emergence of generative artificial intelligence and the impact of social media on depositor behaviour ; the reconfiguration of the financial value chain ; and the new competitors in the market or the growing share of non - bank financial institutions. while non - banks may help in financing the significant costs of the twin green and digital transition, they also need to be adequately regulated and closely monitored. growth in the nbfi sector, globally and in the euro area, is staggering. the global sector expanded from €87 trillion in 2008 to €200 trillion in 2022, an even larger increase than in the euro area sector which has more than doubled in size, from €15 trillion in 2008 to €32 trillion in 2024. the private credit market is a particular concern. it accounts for €1. 6 trillion of the global market and has also seen significant growth recently. growth in the european private credit market has accelerated by 29 % over the past three years, but the market in europe is still much smaller than it is in the united states, which is where investors and asset managers are often based. why is this a concern? certainly, growth of the market alone is not the main worry. first, the end investors are pension funds, sovereign wealth funds and insurance firms, but banks play a significant role in lever

started : since 2007 global banks have already sold off more than us $ 700 billion in assets and operations, of which foreign operations account for almost half. furthermore, in response to the new resolution requirements, some large banks may simplify their organizational structures. i ’ m not suggesting that large universal banks will disappear. they will likely persist, at least because of the significant economies of scale associated with payments and foreign exchange. large banks will also remain because there will be an ongoing need to serve global clients. for their part, smaller and less - complex banks will probably increase their focus on traditional banking. we can ’ t be definitive about these predictions, for we simply do not know how competitive forces will operate in this new environment. but it would be surprising if the net effect were not to reduce the availability of credit. if financial markets had imperfections before, some of those imperfections are likely to be even more evident under the new regulatory environment. this is straight out of your first economics textbook. it goes without saying that reduced availability of credit would be a headwind to economic growth. and, if there are funding gaps in our system at the best of times, and they turn out to be a little bigger under our new regulatory umbrella, those funding gaps will probably be found in all the usual places : lending for young businesses, small - and medium - sized companies, trade finance and infrastructure, to name a few. these areas of retreat by banks could look like good opportunities for other financial intermediaries. we can imagine several different channels where the forces of competition might emerge, all of which could occur simultaneously. bis central bankers ’ speeches first, there is market - based finance. as banks rein in their risk - taking, we can expect that market - based finance will play a larger role than it currently does. we can see this happening already. for starters, in some markets companies increasingly fund themselves by issuing bonds on the market. in the u. s., while bank dealers have significantly reduced their inventories of corporate bonds, non - bank lenders have increased their holdings of corporate bonds. whether they are structured as asset managers, insurers, non - bank financial firms or retail investors, these groups are opportunistically filling the void that traditional bankers have created. securitization is another market - based channel that could really expand in this new world. although the very word securitization has been tainted by the crisis, i can imagine that a new class