Pablo Hernández de Cos: Implications of Spanish banking disintermediation, and the importance of the Capital Markets Union

Keynote speech by Mr Pablo Hernández de Cos, Governor of the Bank of Spain, at the Bloomberg Capital Markets Forum, Madrid, 26 February 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Introduction

Let me begin by thanking Bloomberg for their kind invitation to participate in the opening session of the Bloomberg Capital Markets Forum Madrid.

In my address I shall refer firstly to the phenomenon of banking disintermediation in Spain in the European context, discussing the main implications. And secondly, I shall focus on the importance of the Capital Markets Union project as a private risk mitigation and sharing mechanism in the Economic and Monetary Union (EMU) which, in conjunction with the Banking Union, will provide for an increase in financial stability in the euro area.

Banking disintermediation in Europe and in Spain

As is well known, in the continental European countries banks have traditionally played a key role in the intermediation of economies' financial flows.