also suffer if banks react to lower overall returns by extending riskier loans, which in turn may sour. overall, potential negative side effects from low rates on banking sector profitability are likely to intensify the longer they are used, which is precisely why they are envisaged as short - term measures. but our unconventional measures are not the only headwind for financial sector profitability in the euro area. 7 the overhang of non - performing loans from the financial and sovereign debt crises continue to weigh on banks ’ profits. at the same time, a number of jurisdictions are marked by overcapacity in banking and have average cost to income ratios markedly above those seen elsewhere in europe and other advanced economies. finally, banks are under increasing competition from non - banks and the fintech sector. it is certainly a challenging time on many fronts for euro area banks, and many will have to consider carefully their business models. such efforts need to go hand - in - hand with further steps towards closer cross - border integration : completing banking union is crucial to allow banks to compete internationally as euro area banks and not only as national champions. we need a single euro area regulatory approach that will facilitate cross - border mergers, acquisitions and investment, thereby enhancing diversification, risk - sharing and efficiency. only by completing what we started can we reap the full benefits of banking union. changes are also likely needed from savings products frequently used in the past. i believe that the really important question to debate tonight is not quite the published title, but instead : what are the challenges for long - term saving products in the presence of a low natural rate. conclusion let me sum up. the ecb ’ s unconventional policy measures over recent years have been necessary to react to the severe negative shock arising from the crisis. they differ from conventional policy measures taken before the crisis in part because of impairments to the transmission mechanism caused by the crisis. but in major part the measures are a result of the 4 / 5 bis central bankers'speeches ecb adapting to the secular downward shift in equilibrium interest rates over the past three decades. the measures have been successful in stabilising output, helping to reduce unemployment and have begun to help steer inflation back towards our objective. we will keep the measures in place until output growth and inflation are back on sustainable paths. while some redistribution between households is inevitable with monetary policy actions, it is clear that to date there has not been an inequitable redistribution in the euro area. indeed

mario draghi : interview in de telegraaf interview with mario draghi, president of the european central bank, in de telegraaf, published 21 june 2014. * * * when mario draghi took over as president of the european central bank in november 2011, he stepped into the eye of the hurricane. the euro area was confronted with serious problems. after the financial misery in greece, portugal and ireland, larger countries like spain and italy were also threatening to collapse. panic was widespread, both among politicians and among investors. as of his very first day in office as the president of the central bank, the italian had to take crisis measures. the most serious concerns are a thing of the past, but europe is still experiencing economic woes. draghi remains outwardly calm despite the turbulence he has had to deal with. did he ever have doubts about taking on the job? “ no, no, i never hesitated. things happen. ” mario draghi is 66 years old and has a further five and a half years ahead of him in frankfurt. he met the reporters of de telegraaf for an exclusive interview on the 35th floor of the ecb tower. in the near future, he will be moving to gleaming new premises, but at the moment he is still surrounded by what his predecessors jean - claude trichet and wim duisenberg have left him. “ only the books are different – they are mine. ” he is happy to take up the dutch debate on the euro. he doesn ’ t think much of politicians who promise the earth outside the single european currency. “ some people think we should move back in time, thirty or forty years back. i prefer to go forward. ” and that also means to continue to build up monetary union because it has by no means been completed. minister dijsselbloem said recently that the crisis was over. what is your view? “ the recovery has now been ongoing for around nine months. it is still weak and unevenly distributed across the euro area. and it is vulnerable. accidents could happen in the global economy that can quickly change the situation. that might be a disruption on the financial markets, or geopolitical risks. in addition, unemployment has now been stabilising for some six months. very slowly it has been going down. also in crisis countries such as portugal. but the level of unemployment is still very high. that alone poses a risk to the recovery because it leads to lower