while before an upturn in economic activity has an impact on employment, it is very possible that the riksbank will need to raise the repo rate in a situation where unemployment is still high. this is also something we are assuming in our most recent forecast. there is then a risk that unreasonable requirements will be made of monetary policy. it will then be important to bear in mind that the primary objective of monetary policy is to create good long - term conditions for all participants in the economy. it is important that we have an active discussion of the riksbank ’ s policy. but for the discussion to be fruitful it must be based on realistic expectations of what monetary policy can and cannot achieve. sweden is a small, export - dependent economy and when economic activity abroad suddenly falls, monetary policy cannot prevent negative effects from this on our economy. but we can alleviate these effects. as the financial markets are integrated, we cannot prevent an international financial crisis having effects here, too. then we must use other tools, parallel to our interest rate policy, to make the financial system function in the best possible way given the circumstances. this is what we have done throughout the autumn and we will continue to do this as long as is necessary.

luis de guindos : global financial regulation - where next? pending tasks for regulators and macroprudential policy makers speech by mr luis de guindos, vice - president of the european central bank, at the london city week, london, 21 may 2019. * * * introduction more than ten years have passed since the global financial crisis triggered a comprehensive regulatory reform process. many important measures have been put in place since then. the title of the next panel discussion therefore raises a very pertinent question for global regulators : where next? should regulators take a long break, as some stakeholders might quietly hope? or is there still work to be done? as you might imagine, i tend towards the view that it is not the time for regulators to rest. in my remarks today, i will touch upon three areas that require further efforts. first, for the banking sector, we need to ensure the full and timely implementation of basel iii standards and a proper evaluation of the effects of the reforms. second, macroprudential policy based on robust quantitative assessments should play a crucial role in sustaining the resilience of the financial sector over the financial cycle. third, we need to see active monitoring of the non - bank financial sector, including from a system - wide perspective. this is because of the growing size and risktaking activity of non - banks which may call for macroprudential powers and tools in this area. evaluating the effects of reform and implementing the basel iii package let me start with reform implementation and assessment. as the post - crisis reform agenda for the banking sector is now coming to an end, focus is gradually shifting towards evaluating the effects of the reforms. such evaluation work is an essential part of the policy process. it helps us to understand whether the reforms are having the desired effect, and to identify potential unintended consequences that may have to be addressed. for these reasons, we fully support the evaluation work being carried out under the aegis of the financial stability board. we are also conducting a number of evaluation projects of our own. 1 one recent study by ecb staff, for example, finds that the reforms that are already in place have helped to make the euro area banking system safer. in particular, risks have been considerably reduced, and euro area banks are now better able to withstand shocks of the kind we have experienced in the past. 2 on the one hand, this is a reassuring result, illustrating the progress we have made over the last few years. on