. remember that the existence of large spreads in the sovereign bond market was probably one of the main reasons why our 3 - year ltros had a limited effect in terms of stimulating credit supply by banks. bis central bankers ’ speeches although these spreads have narrowed sharply, there remain considerable differences in real – that is, inflation adjusted – yields across countries. therefore, if purchases of government bonds were to reduce banks ’ opportunity cost of lending by lowering the return of other alternative investments, this might create the incentives for banks to extend credit to the private sector, in particular if banks regain confidence and start to reappraise the macroeconomic outlook as a result of central bank action. in addition, our presence as a buyer in the abs and covered bond markets eases potential balance sheet capacity and liquidity concerns that go along with an increase in credit supply. a precondition for these channels to unleash their full effects is a healthy banking system. the higher banks ’ capital ratios, the lower their bad loan exposure and the more transparent their balance sheets, the larger are the chances that the quantitative impulses of the central bank will get transmitted to the wider economy. in this sense, the completion of the comprehensive assessment and the start of the ssm will provide important support to current and potential future efforts to revitalise sluggish lending in the euro area. in particular, increased clarity and transparency about banks ’ balance sheets, together with a better capitalised banking sector, will create a more supportive lending environment. of course, effectiveness is not the only criterion to assess the potential for new measures. in the euro area, the deliberation also needs to build on and factor in the institutional specificities of the euro area, including the boundaries set by the treaty, notably with respect to the monetary financing prohibition and the no bail - out clause. that is, we cannot simply import the experience from other central banks. we have to carefully design measures that are tailored to the institutional set - up of the euro area. unlike other central banks, we are not dealing with a single fiscal authority but with a multitude of national fiscal authorities. conclusion let me conclude. since june the ecb has responded forcefully to counter growing risks of a too prolonged period of low inflation. taken together, our measures will have a sizeable impact on our balance sheet, which is intended to move towards the dimensions it had at the beginning of 2012. in the coming months, our measures will further ease the monetary policy stance more broadly

through ibf to upskill and prepare our workforce for the future. he was visibly moved. he wished the environment in his own country had that ethos of trust and partnership that we have nurtured here in singapore. this remarkable partnership between the regulator and the industry has been at the heart of singapore's broader success as a leading international financial centre. over the past decades, the financial sector has faced numerous challenges, from financial crises to a global pandemic to technological disruption. through it all, it has been our ability to come together as a united force that has allowed us to not only overcome but thrive in this ever - changing environment. in a world where many regulators are aloof at best and hostile at worst when dealing with the financial industry, the relationship mas has with the industry is special. mas has been fortunate to have an industry that has continually worked with us through thick and thin. on behalf of all my colleagues in mas and ibf, and personally, i stand here in a deep debt of heartfelt gratitude for your support, your collaboration, and your friendship. thank you and i wish you all the best. 3 / 3 bis - central bankers'speeches