total saving is generated by only 30 percent of families. the numbers then paint a rather narrow base since nearly 13 million families out of the estimated 18. 4 million families could only provide 10 percent of total saving. in practice, this means that the cash flows are different across regions, and the preferences differ from person to person. these hurdles may seem daunting but i assure the cmip that you are not alone. the bsp faces the same challenges in our own economic and financial learning program. like you, we believe in the advocacy of financial learning. and like you, we appreciate the difficulties of pursuing such a learning campaign within the context of the nuances of our market and our stakeholders. bis central bankers ’ speeches capital market development and financial stability although the difficulties are defined, the consequences from not pursuing a financial education campaign are even less enticing. financial education creates the platform for raising responsible market agents, who are able to look beyond their own bottom lines. without an appropriate national financial education program, the development of stakeholders who can make well - informed financial decisions who can then take the “ the next step ” from being cash hoarders to become savers and ultimately to become investors who will form the capital base for sustained economic growth will be a slooooww process. and if our country is to take advantage of opportunities at this time and move up the global economic ladder, we need to accelerate this process! but while financial education is a challenging objective on its own, there are equally important goals that must be considered as well. these objectives include the development of the capital market and achieving financial stability. we all know that developing the capital market provides both the “ buy side ” and the “ sell side ” of the market with choices. for the “ buy side ”, choices to reflect its longer - term investment needs. and for the “ sell side ”, choices to adjust product offerings to where there is felt need. developing the capital market, alongside financial education, makes the meeting of an informed risk - responsive investor and a responsible product provider efficient. the development of the capital market is also critical because it relieves the pressures off the spot market. the capital market is the anchor that filters the intra - day and the day - to - day volatilities of the cash market into underlying longer - term trends. investors, providers and regulators need not react to every market blip. instead, decisions can be premised on longterm signals, filtering all the

luis de guindos : international spillovers of monetary policy and financial stability concerns speech by mr luis de guindos, vice - president of the european central bank, at the conference “ the ecb and its watchers xx ”, frankfurt am main, 27 march 2019. * * * introduction it is a great pleasure for me to speak at this year ’ s ecb watchers conference. given the topic of this session, i will start by referring to our recent findings on international spillovers of monetary policy and the related financial stability concerns for the euro area. i will then focus on our financial stability assessment at the present juncture. in doing so, i will briefly refer to an analytical tool we have employed to monitor and assess the banking system ’ s resilience. globalisation has not only caused inflation and output to become increasingly synchronised across countries. equity prices and financing conditions have become more synchronised, too. most of this synchronisation stems from ( common ) global shocks, but the effects of international spillovers of monetary policy are less obvious. in my talk today, i will touch upon issues surrounding these international spillovers, and whether they are of concern for the financial stability of the euro area. in a globalised and financially integrated world, spillovers from the monetary policy of one country to other economies are unavoidable. we can identify at least three international transmission channels : 1. the “ aggregate demand ” channel, through which monetary policy affects domestic demand and, thus, the demand for foreign goods. 2. the “ exchange rate competitiveness ” channel, through which monetary policy affects the exchange rate, meaning it changes the price of domestic goods relative to foreign goods. 3. the “ financial channel ”, through which monetary policy affects domestic financial conditions. when there are strong financial connections between countries, these conditions may change abroad as well. from these transmission channels, let me focus on the “ financial channel ” for the remainder of my talk. financial spillovers from us monetary policy to the euro area measuring international spillovers is not easy, because global shocks lead to economies moving in a synchronised manner for reasons unrelated to monetary policy. 1 in line with previous evidence2, recent ecb research identifies large financial spillovers from us monetary policy to global financial conditions, including euro area financial conditions. 3 more specifically, over the course of one month, monetary policy tightening by the federal reserve system drives up euro area corporate bond spreads