Let me start by looking at why investment has been so weak in Europe in recent years, despite historically low levels of financing costs. Weak investment since the crisis has been accompanied by slow productivity growth across virtually all advanced economies.
Following my nomination by the ECB’s Governing Council as candidate for the position of Vice-Chair of the ECB’s Supervisory Board, I am grateful for this opportunity to outline the key principles that I intend to bring to the role.
During the financial crisis, stress tests were primarily used to identify capital shortfalls in the banking sector and to enhance market discipline. This was achieved through the publication of consistent and granular data on a bank‐by‐bank basis, with banks judged to have either “passed” or “failed” the test.