luis de guindos : banking union and capital markets union after covid - 19 speech by mr luis de guindos, vice - president of the european central bank, at the cirsf ( research centre on regulation and supervision of the financial sector, portugal ) online annual international conference 2020 on major trends in financial regulation, frankfurt am main, 12 november 2020. * * * it is a great pleasure for me to open this virtual conference on major trends in financial regulation. where would we be today if we had not improved the governance framework and policy toolkit in the aftermath of the 2008 financial crisis? imagine if the euro area had to face the coronavirus ( covid - 19 ) pandemic without single banking supervision, common resolution arrangements, higher capital requirements for banks and an organisational framework enabling swift decisions on crucial policy matters. indeed, we have been seeing the benefits of the post - crisis reforms throughout the covid - 19 crisis. banks ’ capital resources have substantially increased since the creation of the banking union. liquidity ratios have also risen and remained strong over the same period. and the fact that crisis - related decisions were taken at banking union level has enhanced the coherence, consistency and coordination of our response. this has been essential in ensuring an effective response and avoiding a patchwork of national measures with pronounced fragmentation along national lines. but we need to do more to help us rebound from the current crisis and secure an even better and more resilient future. the ecb is a staunch supporter of the banking union and the capital markets union ( cmu ) – two central policy initiatives aiming to catalyse financial integration in the european union. advancing these financial sector reforms is not only good for financial institutions, market players and investors but will benefit all of us as europeans. the more we integrate and develop eu capital markets, the more we will support a robust and uniform recovery across our economies, along with the transition to a low - carbon, sustainable and digitalised economy. and completing the banking union by establishing a common deposit insurance scheme would ensure depositors are equally protected across member states and preserve their confidence if we were to face turbulence. let me first say a few words on the current situation in financial markets. the situation in financial markets the coronavirus pandemic continues to have a major disruptive impact on the economic and financial environment. governments are taking new measures to contain the virus and the pandemic is still weighing on the outlook for financial stability. vu

views on the global perspective on equality and the possible explanations for increased inequality in many developed economies during recent decades. as i have said, the contribution from monetary policy to equality should in my view in general be minor. • i do not think you can talk about globalisation without also talking about technology. some argue that increased inequality in many countries is due to the latest technological progress having been skills biased, resulting in a rise in the skill premium and the decline of some labour market institutions in advanced economies, emerging markets and developing countries 4. the decline of labour market institutions includes lower trade union membership, which reduces the relative bargaining power of labour, and more flexible labour market institutions that can pose challenges see, for example, the effects of the monetary policy pursued by the federal reserve in connection with the financial crises in bivens ( 2015 ), the effects of monetary policy in the usa since 1980 in coiboin ( 2016 ), the effects in advanced economies since 1990 in panel data - analyses in furceri et al. ( 2016 ) and effects of the monetary policy conducted by the ecb in connection with and after the financial crises, with a focus on germany in bundesbank ( 2016 ). 4 one example is that a decline in trade union membership ( union rate ) reduces the relative bargaining power of labour, exacerbating wage inequality ( frederiksen and poulsen 2010 ). another is that more flexible labour market institutions ( although positive for reallocating resources to more productive firms and enabling firm restructuring ) can pose challenges for workers, especially those with low skills, and hence play an important role in explaining inequality developments ( alvadero et al 2013 ). 3 for workers with low skills. technological progress combined with globalization seems to have played at least some role in increasing inequality within countries. • the discussion of the effects of globalization is interesting. globalization has for long been a natural part of the nordic economies. our dependency on foreign trade is much higher than the global average. there is among the nordic countries an acceptance on the positive long term net effects on productivity, growth and employment. globalization creates opportunities for new jobs. • the reason for the positive view on globalisation in the nordic countries might be a broader social security net and public policy that help people who lose their jobs due to trade as well as technology. training and education improve employability and reasonable replacement ratios in unemployment benefit and other social benefits can mitigate the negative short - term effects of globalization. these are