agency with full decision - making powers. if this is not feasible in the short run, a second - best option would be to use the esm for this purpose for an interim period. conclusion let me now conclude. there is no doubt that the banking system in the euro area is suffering from a confidence problem. investors remain unsure about the health of banks ’ balance sheets ; about the rigour of their supervision ; and about the capacity of fiscally - constrained countries to resolve banks that are no longer viable. this is why advancing with banking union is such an urgent priority for the euro area. it is essential to build trust in the banking sector ; to increase transparency over asset quality ; and to ensure that banks that need to be wound down, can and will be. from the perspective of the ecb, it is also indispensable to reintegrate financial markets and so to restore the even transmission of our monetary policy across the euro area. the progress made so far has been impressive, by any measure. the ssm is a milestone in european integration. but this is no time to rest on our laurels. we cannot afford a half - baked banking union. so i hope that, as of tomorrow, policy makers will now take up with urgency the task of building a strong srm. thank you for your attention. bis central bankers ’ speeches

of price quotes, but of a billion. 5 the use of scanner data has enabled a much greater idea of not only more granular purchases, but also seasonality in purchases. but the technological changes to price and wage setting behaviour have much deeper relevance for central banks than just the measurement of inflation. the speed and extent that inflation reacts to shocks – both domestic and global – affects the optimal response of monetary policy to those shocks. allow me to give a few examples of how technology can affect the price - setting process and the economy ’ s reaction to shocks, focusing on e - commerce. e - commerce can erode the monopolistic and monopsonistic power of suppliers of goods and services, reducing mark - ups. such a change in mark - ups can be viewed as a flattening of the phillips curve, meaning a given change in the output gap has a weaker impact on inflationary pressures. conversely, e - commerce may result in suppliers changing prices more frequently. 6 as i mentioned earlier, there is certainly evidence of this happening in certain sectors. partly this is due to lower menu costs for producers, but also lower search costs for consumers increases the likelihood of them switching supplier and hence increases the opportunity cost of being away from the optimal price. more frequent price changes result in a steeper phillips curve – prices react more quickly and stronger to changes in output. at the same time, e - commerce may restrict the ability of businesses to set prices that deviate substantially from those of large online retailers. 7 so prices may change more often, but there may be a greater clustering of prices, which in turn may restrict the ability of prices to reflect idiosyncratic shocks. furthermore, the dominance of certain online retailers, which may potentially be reinforced by the algorithms of search engines, may lead to market power and stifling of competitive forces over the longer term. overall, the impact of e - commerce on the slope of the phillips curve is uncertain, and studies have in general struggled to find large effects on annual inflation. 8 given the overall difficulty in estimating the slope of the phillips curve, this is not entirely a surprise. and beyond just ecommerce, the development of global value chains9 facilitated by technology could potentially change the influence of global inflation factors on domestic inflation10 and the degree of exchange rate pass - through. 11 as with the measurement of consumer price indices, the greater availability of more granular data has enabled a much greater understanding of how businesses set