It is my pleasure to deliver the closing remarks for this event.
As we come to the end of this conference, I would like to begin by thanking our moderators, speakers and participants for such engaging and insightful discussions.
I would also like to reiterate our appreciation to the IMF for the work carried out during this FSAP and for the constructive dialogue maintained throughout the process.
And thank the outstanding work undertaken by the staff at the Bank of Portugal.
Throughout the afternoon, we reflected on two key aspects of the Portuguese financial stability framework.
The first concerned macroprudential policy, systemic risk assessment and stress testing.
The second focused on supervision, cyber resilience, crisis management and resolution.
One message emerged particularly clearly:
Resilience is not a one-off. It is built over time, through strong and adaptative institutions, effective authorities, continuous investment in analytical capabilities, robust supervisory practices and sound policy frameworks.
One main issue discussed today were the main risks facing the Portuguese financial system.
And real estate prices ranked number one.
While developments in real-estate markets remain a source of attention, particularly given affordability challenges in Portugal, there are important mitigating factors. House-price increases have not been primarily driven by credit expansion, and the actions taken by Banco de Portugal as macroprudential authority have helped strengthen resilience. Borrowers have been required to maintain prudent debt-service burdens and to remain resilient to substantial interest-rate shocks, while banks have built robust capital buffers.
As a result, like the FSAP team, we are confident that even an unlikely sharp correction in house prices could be absorbed by the financial system.
Nonetheless, like always, we remain vigilant.
We do so through a strong analytical framework and an extensive use of data and modelling to support financial stability analysis and evidence-based policymaking.
A second topic in today's conference was the progress of the Portuguese financial system.
Twenty years after Portugal's previous FSAP, the financial system assessed today is fundamentally different from the one examined two decades ago.
Portugal now has a stronger, more resilient and better-prepared financial system. A financial system that is robust. A supervision that is intrusive. And a macroprudential authority that is attentive and willing to act.
Allow me to highlight a few ideas discussed today.
One is the need to constantly strengthen the foundations of financial stability. We had representatives of banks recognizing here today that more capital has helped increase resilience, and so has having a more involved supervision. And also noting that “Banks have done their homework”.
We may discuss whether there is a level playing field at the international level. But we should do so with an across the cycle perspective. As a macroprudential authority and supervisor, we need to ensure that banks are healthy not just in good times, but also robust to shocks. Ultimately, our goal is to facilitate adequate levels of intermediation all across the cycle. And while the different actors have different roles to perform, all our roles matter.
We have been doing well in our different roles in the recent past, but we must not forget the lessons from the past.
The second one, that both the FSAP and our discussions also reminded us today, is that resilience can never be taken for granted.
The environment in which financial institutions operate continues to evolve rapidly. And so do financial institutions themselves.
Digitalisation, artificial intelligence, cyber risk, geopolitical uncertainty and new business models are transforming both the nature of financial risks and the channels through which they spread.
We have new mandates, we have new threats. And we have new challenges.
Both banks and authorities must therefore continue to develop the expertise, analytical capabilities and resources necessary to remain attuned to both current and emerging risks, while continuously strengthening the tools available to address them. We need to continue collaborating within the central bank and with other authorities, also beyond the financial area.
That is our constant objective. And it is also in this perspective that we welcome the FSAP recommendations. They help us in this never-ending process of improving.
We appreciate that they were presented not a response to structural weaknesses, but rather a roadmap for strengthening an already robust framework.
That distinction matters.
The overwhelming message of this FSAP to Portugal was not one of correction, but one of continuous improvement.
As we have discussed today, several initiatives are already underway, while other recommendations will require further analysis, consultation and coordination among the relevant authorities.
Let me conclude with a broader reflection.
Discussions about macroprudential policy, supervision, cyber risk or crisis management can sometimes appear highly technical.
Yet their ultimate purpose is remarkably simple: ensuring that the financial system continues to serve society, even in times of stress.
This is also why it is important to bring these discussions beyond the community of regulators, supervisors and central banks. Greater public awareness helps explain why resilience matters, why preventive action is necessary and why financial stability deserves continued attention, even when risks do not appear imminent.
This is yet another reason why exercises such as the FSAP are so valuable.
Today's discussions have shown both how far Portugal has come over the last twenty years and how committed the authorities remain to strengthening the frameworks that support financial stability.
The progress recognised by the IMF is encouraging.
The recommendations provided are valuable.
And the commitment of Banco de Portugal to continued improvement, through learning, adapting and preparing, remains unchanged.
On that note, let me once again thank all of you for your participation, engagement and contribution to today's debate.
I wish you all a very pleasant evening.
Thank you very much.