Klaas Knot: Introductory - Financial Stability Report Autumn 2020

Introductory remarks by Mr Klaas Knot, President of the Netherlands Bank, at the press conference for the autumn 2020 Financial Stability Report, Amsterdam, 13 October 2020.

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

• Welcome to the press conference on the Financial Stability Report (FSR). Before we start taking questions, let me briefly walk you through the main elements of our FSR.
• As in the spring, the main focus of this report is - of course - the impact of the coronavirus crisis on financial stability. This crisis has now been going on for more than six months and the feared second wave of infections is now a reality. Where do we stand in this crisis and how has the financial sector fared so far? Let me say a few things about that.
• First, uncertainty about the economic impact of this crisis remains as substantial as before. The Dutch economy has so far contracted somewhat less than we feared in the spring. But the resurgence in the number of infections has fuelled renewed uncertainty, as new measures seem necessary, but also because consumers and entrepreneurs are becoming more cautious. A proper assessment of the total economic damage will only be possible once the virus is under control. And it is important to stress once again that the economy and health are not in a zero-sum game. Even without measures the economy will be hit. It is therefore of the essence that everybody contributes to containing the virus. That is in the interest of our health, but also in the interest of the economy.