The financial sector is facing challenges, and despite progress in recent years, the European Union needs greater progress in the area of economic and monetary union, the Bank of Greece Governor, Yannis Stournaras, said on Wednesday in Zagreb in his lecture in the Croatian National Bank (HNB).
"The financial sector is facing challenges on many fronts. Banks are no exception. Jonathan Hill (2015, 2016) recently spoke about 'a brave new world for banks' and the need of a revolution in which banks are reformed and restructured with respect to both their business models and governance. Supervisors will also have to adapt to this revolution," according to Stournaras's speech.
"Despite the progress made in the past few years, with Banking Union as the flagship of the reform effort, more progress is needed as Economic and Monetary Union (EMU) remains incomplete. Divergence across the euro area is significant and the crisis of recent years has further highlighted existing shortcomings and important differences that need to be bridged. With respect to the financial system, we should seek an approach that promotes proportionality, transparency and competitiveness. Regulatory consistency, coherence and certainty are crucial to investors’ decision-making process," reads the speech released on the HNB web site.
In attendance at the lecture were foreign diplomats, academicians, business people and media representatives.
Introducing the Greek central bank governor, the HNB Governor Boris Vujcic said that Stournaras's lecture was a unique opportunity to present challenges central banks are facing in attempts to attain objectives of their respective monetary policies in times of protracted recessions and social unrest.