national financial systems. economic agents can appreciate daily the benefits from the single market and the euro. yet regrettably, no tangible benefits can currently be discerned to stem from the banking union in terms of greater competition in prices and financial services. the truth is that european citizens and companies continue to face obstacles to investing in european markets. national pensioners and investors have access to different investment products and their rights differ as a result of different local insolvency laws. lastly, i pointed out earlier that the banking sector continues to be mainly national, and it remains closely linked to the country ’ s sovereign risk. many consider the lack of cross - border mergers as proof that much remains to be done in terms of market integration and diversification. in any event, scant cross - border consolidation, particularly in a setting of clear overcapacity of the european banking sector, is symptomatic. on this matter, the ecb, in its latest stability report7, published a study on the degree of overcapacity of the sector in europe and the potential implications for bank business. in keeping with the conclusions of the study, excess capacity may lead to operating below margin in the face of heightened competition. that would preclude making the necessary investments for the future of banks and their adaptation to new technologies and new operators ( e. g. in systems ), creating “ zombie ” - like banks that weigh down even further on the sector ’ s profitability. the study details those banks with a return on equity ( roe ) that is lower than the median of 6 % over three years, but the most worrying group would be that of banks with an roe of less than 3 %, no less than around 25 % of the total. the study concludes with the need to address restructuring and mergers, showing a clear preference for cross - border as opposed to national mergers. on the ever - controversial matter of mergers, i have stated on several occasions that our role as supervisors is not to decide which mergers are desirable and which not. it is rather to assess to what extent a merger creates a more solvent bank and with a sound business model, enabling structural costs to be cut significantly and, in short, generating overall value. cgfs financial stability review – november 2019. 7 / 10 in my view, the lack of cross - border mergers is partly due to the overcapacity and fragmentation of the financial sector in europe. true, the benefits of synergies,

now call “ financial health ”. this plan has been run from the outset in collaboration with the national securities market commission and more recently with the ministry of economic affairs and digital transformation. since its launch, the financial education plan has raised awareness of financial planning and encouraged households to treat savings as a fixed expense, helping them to build up a financial safety net based on what they can afford. further, the plan also aims to teach the general public, and students in particular, to make responsible use of credit as and when it is needed, and to invest their savings based on sound risk assessments and in awareness of the risk - return trade - off. the banco de espana has redoubled its engagement in financial education, with recent structural changes aimed at reinforcing this function and helping the public to make better financial decisions, including when it comes to their savings and investments. in conclusion, spanish households ’ ability to appropriately manage their savings, based on informed decision - making, is a cornerstone of their financial health and, therefore, of stability for society at large. thank you very much.