Draghi Speech: Use of monpol is not the right instrument to address financial imbalances

Key highlights from the speech by Mario Draghi, President of the ECB and Chair of the European Systemic Risk Board, at the second annual conference of the ESRB, Frankfurt am Main, 21 September 2017:

• Use of monetary policy is not the right instrument to address financial imbalances
• Macroprudential policies, targeted at particular markets or countries, can play a key role in addressing such imbalances.
• Given the bank-based nature of the European economy, the state of the banking sector is central to our assessment of systemic risk.
• Banks in Europe are more resilient and the banking union has advanced.
• Authorities need to watch out for blind spots, where risks can build up unnoticed, and use the tools at their disposal.