Luis de Guindos

Luis de Guindos: Banking union: achievements and challenges

Retrieved on: 
Friday, March 19, 2021

Speech by Luis de Guindos, Vice-President of the ECB, at the High-level conference on “Strengthening the EU’s bank crisis management and deposit insurance framework: for a more resilient and efficient banking union” organised by the European CommissionThe global financial crisis and sovereign debt crisis highlighted the need to make faster progress towards completing EMU.

Key Points: 

Speech by Luis de Guindos, Vice-President of the ECB, at the High-level conference on “Strengthening the EU’s bank crisis management and deposit insurance framework: for a more resilient and efficient banking union” organised by the European Commission

    • The global financial crisis and sovereign debt crisis highlighted the need to make faster progress towards completing EMU.
    • The implementation of these two pillars represents a milestone in European integration and a major success for financial stability.
    • But in terms of completing the banking union we are not there yet.
    • First, the final pillar: the European Deposit Insurance Scheme (EDIS).
    • Second, in the field of crisis management, the tools for dealing with the failure of smaller and deposit-funded banks.
    • And third, the role of macroprudential policy and how it can help us deal with shocks to the financial system.
    • This is problematic as the level of confidence in the safety of bank deposits may differ across Member States.
    • So long as deposit insurance remains at the national level, the link between a bank and its home sovereign persists.
    • But we have not yet seen sufficient political will to implement this third pillar of the banking union.
    • These differences create an uneven playing field for bank customers and can prevent failing banks from exiting the market smoothly.

Luis de Guindos: Banking union: achievements and challenges

Retrieved on: 
Friday, March 19, 2021

Speech by Luis de Guindos, Vice-President of the ECB, at the High-level conference on “Strengthening the EU’s bank crisis management and deposit insurance framework: for a more resilient and efficient banking union” organised by the European CommissionThe global financial crisis and sovereign debt crisis highlighted the need to make faster progress towards completing EMU.

Key Points: 

Speech by Luis de Guindos, Vice-President of the ECB, at the High-level conference on “Strengthening the EU’s bank crisis management and deposit insurance framework: for a more resilient and efficient banking union” organised by the European Commission

    • The global financial crisis and sovereign debt crisis highlighted the need to make faster progress towards completing EMU.
    • The implementation of these two pillars represents a milestone in European integration and a major success for financial stability.
    • But in terms of completing the banking union we are not there yet.
    • First, the final pillar: the European Deposit Insurance Scheme (EDIS).
    • Second, in the field of crisis management, the tools for dealing with the failure of smaller and deposit-funded banks.
    • And third, the role of macroprudential policy and how it can help us deal with shocks to the financial system.
    • This is problematic as the level of confidence in the safety of bank deposits may differ across Member States.
    • So long as deposit insurance remains at the national level, the link between a bank and its home sovereign persists.
    • But we have not yet seen sufficient political will to implement this third pillar of the banking union.
    • These differences create an uneven playing field for bank customers and can prevent failing banks from exiting the market smoothly.

Luis de Guindos: Interview with Helsingin Sanomat

Retrieved on: 
Sunday, November 29, 2020

INTERVIEWInterview with Helsingin SanomatInterview with Luis de Guindos, Vice-President of the ECB, conducted by Petri Sajari on 24 November 2020The news is having a positive impact on market sentiment, but the implementation of the vaccine warrants our attention.

Key Points: 


INTERVIEW

Interview with Helsingin Sanomat

    Interview with Luis de Guindos, Vice-President of the ECB, conducted by Petri Sajari on 24 November 2020

      • The news is having a positive impact on market sentiment, but the implementation of the vaccine warrants our attention.
      • According to the International Monetary Fund, the pandemic will have the largest impact on the eurozone economy.
      • The first long-term consequence of the pandemic is that public debt-to-GDP ratios will increase by between 15 and 20 percentage points.
      • And there is a risk, which we need to avoid, of long-term scars in the labour market.
      • Currently we see a decoupling between the drop in economic activity and the evolution of the labour market, i.e.
      • unemployment levels have not risen by as much as you would expect with such a deep decline in activity.
      • This is because the temporary work schemes implemented by governments across Europe are avoiding a sharp increase in unemployment.
      • We believe the economy will start to recover in 2021 and continue its revival in 2022.
      • We can then not only recover the level of economic activity we had before the pandemic, but also the level of employment.
      • If the crisis gets worse, which now seems inevitable, what more will the ECB be able to do?
      • These have made the natural interest rate, which is a real variable rather than a monetary variable, decline over time.
      • Public expenditure has to focus on the pandemic, for instance on furlough or public guarantee schemes, healthcare, etc.
      • So, basically, your answer is that you dont believe that there has been a major shift in attitude towards public debt?
      • The big change is that the pandemic has caused a public health crisis which demanded a fiscal response.

    ECB review sees increased medium-term vulnerabilities for corporates and banks

    Retrieved on: 
    Thursday, November 26, 2020

    PRESS RELEASE

    Key Points: 
    • PRESS RELEASE

      ECB review sees increased medium-term vulnerabilities for corporates and banks

      25 November 2020

      Vulnerabilities in the corporate sector are increasing as the pandemic evolves and their unearthing could test the resilience of euro area banks in the future, the European Central Bank (ECB) says in its latest Financial Stability Review (FSR).

    • Provisions have increased but look optimistic in some cases, while guarantees and moratoria may have lengthened the time it takes for weak economic performance to translate into loan losses, said Luis de Guindos, Vice-President of the ECB.
    • They are also expected to face continued pressures on profitability, including from a weaker outlook for lending and continued structural challenges.
    • Banks capital buffers remain comfortable and should remain available to absorb losses and support lending for an extended period.

    ECB review sees increased medium-term vulnerabilities for corporates and banks

    Retrieved on: 
    Wednesday, November 25, 2020

    PRESS RELEASE

    Key Points: 
    • PRESS RELEASE

      ECB review sees increased medium-term vulnerabilities for corporates and banks

      25 November 2020

      Vulnerabilities in the corporate sector are increasing as the pandemic evolves and their unearthing could test the resilience of euro area banks in the future, the European Central Bank (ECB) says in its latest Financial Stability Review (FSR).

    • Provisions have increased but look optimistic in some cases, while guarantees and moratoria may have lengthened the time it takes for weak economic performance to translate into loan losses, said Luis de Guindos, Vice-President of the ECB.
    • They are also expected to face continued pressures on profitability, including from a weaker outlook for lending and continued structural challenges.
    • Banks capital buffers remain comfortable and should remain available to absorb losses and support lending for an extended period.

    Luis de Guindos: Loukas Karabarbounis’s contribution to research on the interaction between labour and capital market imperfections and macroeconomic outcomes

    Retrieved on: 
    Thursday, October 22, 2020

    SPEECHLoukas Karabarbounis’s contribution to research on the interaction between labour and capital market imperfections and macroeconomic outcomesRemarks by Luis de Guindos, Vice-President of the ECB, on the occasion of the award of the Bernácer Prize to Professor Loukas Karabarbounis

    Key Points: 


    SPEECH

    Loukas Karabarbounis’s contribution to research on the interaction between labour and capital market imperfections and macroeconomic outcomes

      Remarks by Luis de Guindos, Vice-President of the ECB, on the occasion of the award of the Bernácer Prize to Professor Loukas Karabarbounis

      Luis de Guindos: Loukas Karabarbounis’s contribution to research on the interaction between labour and capital market imperfections and macroeconomic outcomes

      Retrieved on: 
      Thursday, October 22, 2020

      SPEECHLoukas Karabarbounis’s contribution to research on the interaction between labour and capital market imperfections and macroeconomic outcomesRemarks by Luis de Guindos, Vice-President of the ECB, on the occasion of the award of the Bernácer Prize to Professor Loukas Karabarbounis

      Key Points: 


      SPEECH

      Loukas Karabarbounis’s contribution to research on the interaction between labour and capital market imperfections and macroeconomic outcomes

        Remarks by Luis de Guindos, Vice-President of the ECB, on the occasion of the award of the Bernácer Prize to Professor Loukas Karabarbounis

        Statement by President Donohoe on the candidates for the post of ECB executive board member

        Retrieved on: 
        Saturday, September 26, 2020

        The term of the European Central Bank's executive board member, Yves Mersch, will end on 14 December 2020.

        Key Points: 
        • The term of the European Central Bank's executive board member, Yves Mersch, will end on 14 December 2020.
        • The European Council will appoint a new member on a recommendation from the Council and after having consulted the European Parliament and the ECB.
        • At the Eurogroup meeting of 11 September, I asked euro area members to put forward candidates for Mr Mersch's replacement.
        • The Council will then adopt a recommendation to the European Council, acting by reinforced qualified majority of euro-area members.

        Luis de Guindos: Interview with La Razón

        Retrieved on: 
        Monday, September 21, 2020

        INTERVIEWInterview with La RazónInterview with Luis de Guindos, Vice-President of the ECB, conducted by Jesús Rivasés on 14 September 2020 These are issues which, once a solution to the pandemic has been found, will still exist and will affect day-to-day economic decisions.

        Key Points: 


        INTERVIEW

        Interview with La Razón

          Interview with Luis de Guindos, Vice-President of the ECB, conducted by Jesús Rivasés on 14 September 2020

            • These are issues which, once a solution to the pandemic has been found, will still exist and will affect day-to-day economic decisions.
            • Should the European Union continue to offer stimulus and/or prolong the suspension of the Stability and Growth Pact?
            • This was unavoidable, and both the fiscal and monetary stimulus should continue for as long as we feel the effects of the pandemic.
            • Is the ECB prepared to maintain its low interest rate policy and asset purchase programmes for as long as required?
            • We then expanded our asset purchase programme through the pandemic emergency purchase programme (PEPP) to stabilise financial markets.
            • Last of all, some banking supervision rules were adapted to ensure that credit could continue to flow.
            • The response, from both a fiscal and a monetary perspective, has been completely different from the previous crisis.
            • Is there any possibility that the PEPP, which for the time being is temporary, will be made permanent?
            • But temporary things sometimes have a habit of becoming permanent For now, the PEPP will run until the middle of next year.
            • It has a total envelope of 1.35trillion, a substantial amount of which has still not been used.
            • The programme is very flexible; it is serving its purpose and there is still room for manoeuvre.
            • I would phrase it differently: the ECB has to act for as long as its price stability objective is not met.
            • To begin with, it was below 2%, and in 2003 it was clarified that would mean below, but close to, 2%.
            • Whats important is that we do our job well and its not an easy one at a very difficult time.
            • And not just President Lagarde and me, but all of the Executive Board and the Governing Council too.
            • Sorry, but you are independent and you have the power to create and destroy money, which nobody else has.

          Luis de Guindos: Interview with La Razón

          Retrieved on: 
          Sunday, September 20, 2020

          INTERVIEWInterview with La RazónInterview with Luis de Guindos, Vice-President of the ECB, conducted by Jesús Rivasés on 14 September 2020 These are issues which, once a solution to the pandemic has been found, will still exist and will affect day-to-day economic decisions.

          Key Points: 


          INTERVIEW

          Interview with La Razón

            Interview with Luis de Guindos, Vice-President of the ECB, conducted by Jesús Rivasés on 14 September 2020

              • These are issues which, once a solution to the pandemic has been found, will still exist and will affect day-to-day economic decisions.
              • Should the European Union continue to offer stimulus and/or prolong the suspension of the Stability and Growth Pact?
              • This was unavoidable, and both the fiscal and monetary stimulus should continue for as long as we feel the effects of the pandemic.
              • Is the ECB prepared to maintain its low interest rate policy and asset purchase programmes for as long as required?
              • We then expanded our asset purchase programme through the pandemic emergency purchase programme (PEPP) to stabilise financial markets.
              • Last of all, some banking supervision rules were adapted to ensure that credit could continue to flow.
              • The response, from both a fiscal and a monetary perspective, has been completely different from the previous crisis.
              • Is there any possibility that the PEPP, which for the time being is temporary, will be made permanent?
              • But temporary things sometimes have a habit of becoming permanent For now, the PEPP will run until the middle of next year.
              • It has a total envelope of 1.35trillion, a substantial amount of which has still not been used.
              • The programme is very flexible; it is serving its purpose and there is still room for manoeuvre.
              • I would phrase it differently: the ECB has to act for as long as its price stability objective is not met.
              • To begin with, it was below 2%, and in 2003 it was clarified that would mean below, but close to, 2%.
              • Whats important is that we do our job well and its not an easy one at a very difficult time.
              • And not just President Lagarde and me, but all of the Executive Board and the Governing Council too.
              • Sorry, but you are independent and you have the power to create and destroy money, which nobody else has.