repository. these changes will create a new landscape, from a regulatory, commercial and competitive perspective, for securitisation repositories in years to come. while the ecb welcomes the finalisation of the trilogue, there are some aspects of the sts regulation for which the ecb has concerns. for example, providing a role in the legislation for third parties in the sts certification process introduces moral hazard for investors as investor would have fewer incentives to undertake independent due diligence. additionally, it would increase complexity and burden public resources, given the need to supervise such third parties separately. in addition, the compromise text no longer requires originators and sponsors to disclose the actual transaction contracts. instead this transparency enhancement has been weakened so a summary of the relevant documentation will also be accepted. this is a weaker requirement than the current provisions of article 8b of the credit rating agencies regulation. these and other aspects will need to continue to be assessed as the regulatory technical standards become available in the coming months. a new frontier for eu - wide transparency : npl register looking ahead, a new frontier for having more transparency in the form of loan - level data could emerge. as mentioned by market participants and policy makers, one of the key challenges for the non - performing loans ( npls ) market is the lack of standardised access to high quality data on npls. they pointed out that one possibility to address the large stock of non - performing loans ( npls ) could be to create an eu wide template and reporting system for such loans, alongside minimum standards for transparency. currently, there is no functioning npl market. although there are many banks in the eu who would like to sell these assets, the investor base is only developing, while there are certainly buyers who would be interested to acquire these assets, at the right price. efforts to enhance the transparency and standardisation of npls could foster the creation of a npl market. but we have to be mindful not to stigmatize lenders unduly and respect confidentiality appropriately. conclusion let me conclude. the eurosystem abs loan - level initiative has made an important contribution in ensuring a high degree of transparency to enable investors to assess the embedded risks of securitisations. at the same time, a number of barriers are yet to overcome to foster the revitalisation of european abs markets. much work is already on - going on this topic, but many important technical standards still need to be finalised. loan

luis de guindos : outlook for the euro area economy and financial stability speech by mr luis de guindos, vice - president of the european central bank, at the 26th frankfurt euro finance week, frankfurt am main, 13 november 2023. * * * it is a pleasure to take part in this year's edition of the frankfurt euro finance week. i will begin by providing an overview of the euro area economic outlook that underpinned the governing council's deliberations and the monetary policy decisions we took in october. i will then discuss how we see the risks to financial stability and related macroprudential policy issues. euro area economic outlook when i spoke at this event last year, inflation was at historically high levels, both in the euro area and around the world, and growth was slowing following the post - pandemic rebound. today, inflation is significantly lower, but it is still expected to stay too high for too long. at the same time, the growth outlook for the euro area economy has deteriorated further, as global growth momentum slows and tighter financing conditions are increasingly weighing on investment and consumer spending. in the third quarter of this year real gdp declined by 0. 1 % quarter on quarter. there are signs that manufacturing output remains firmly in contractionary territory, while the services sector has weakened further. weaker industrial activity is spilling over to services, the impetus from reopening effects is fading and the impact of higher interest rates is broadening. it is likely that the euro area economy will remain subdued in the near term. however, it looks set to strengthen again over the medium term, as inflation falls further, household real incomes recover and the demand for euro area exports picks up. inflation, which has been on a downward trajectory over the last 12 months, dropped markedly in both september and october. it now stands at 2. 9 %, according to eurostat's flash estimate. the decline, which was in part due to strong base effects, was broad - based, reflecting a drop in energy prices and falling food, goods and services inflation. we expect a temporary rebound in inflation in the coming months as the base effects from the sharp increase in energy and food prices in autumn 2022 drop out of the year on year calculation. but we see the general disinflationary process continuing over the medium term. energy prices remain a major source of uncertainty amid heightened geopolitical tensions and the impact of fiscal measures. the same is true for food