Each year we look at the risks banks face and how well-equipped they are to deal with them. What are our latest findings? And what are supervisors most concerned about? In this episode of The ECB Podcast, our host Katie Ranger explores these questions with Supervisory Board Chair Andrea Enria and Vice-Chair Frank Elderson. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 12 February 2022 and recorded on 10 February 2022. In this episode: 00:58 - What are the results of our latest assessment of banks? How Europe’s banks are faring two years into the pandemic and whether the crisis phase is over for them. 07:18 – How are banks doing on credit risk? How prepared banks are to manage credit risk and the issues our supervisors ask them to fix. 11:21 – The big risk on the horizon: the climate crisis How 2022 will be a big year for our work supervising climate risks and the extent to which banks are taking them into account. 15:30– Are banks’ business models sustainable? How the digital transformation can make banks’ business models more sustainable. 18:34 – Improving banks’ internal governance Internal governance is a weak spot for banks and the role diversity can play in ensuring sound decision-making. 23:06 – Our guest's “hot tip” for our listeners A book recommendation related to the challenges banks are currently facing. Additional material: Press release: ECB requires banks to hold marginally more capital in 2022, 10 February 2022 https://www.bankingsupervision.europa.eu/press/pr/date/2022/html/ssm.pr220210~6455538b07.en.html Press release: ECB will not extend capital and leverage relief for banks, 10 February 2022 https://www.bankingsupervision.europa.eu/press/pr/date/2022/html/ssm.pr220210_1~ea3dd0cd51.en.html Aggregated results of SREP 2021, 10 February 2022 https://www.bankingsupervision.europa.eu/banking/srep/2022/html/ssm.srepaggregateresults2022.en.html Speech by Andrea Enria, Chair of the Supervisory Board of the ECB, at the press conference on the results of the 2021 SREP cycle, 10 February 2022 https://www.bankingsupervision.europa.eu/press/speeches/date/2022/html/ssm.sp220210~b95041902b.en.html The ECB Podcast: Making sure banks are run by the right people https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod211210_episode24.en.html The ECB Podcast: What lies on the horizon for Europe’s bank? https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod211116_episode23.en.html Banking Supervision website www.bankingsupervision.europa.eu European Central Bank website www.ecb.europa.eu

Make sure you have a euro banknote to hand as our host Katie Ranger and Martin Münd, counterfeit expert and banknote enthusiast, explore everything you need to know about euro banknotes. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 5 February 2022 and recorded on 19 January 2022. In this episode: 01:26 – What exactly does a counterfeit expert do? How our guest Martin Münd turned his passion for banknotes into a job and what his role as an ECB counterfeit expert involves. 5:18 – 20 years of euro banknotes Euro banknotes were introduced on 1 January 2002 in what was the world’s largest ever cash changeover. What are our guest’s memories of that day? 08:43 – Banknote design What the design elements of euro banknotes are, why they matter and how visually impaired people can distinguish between different banknote denominations. 13:39 – How to spot a fake banknote What the security features of euro banknotes are, how you can check if a banknote is real or fake using the “feel-look-tilt” method, and what tomatoes and banknotes have in common. 25:33 – What’s next for euro banknotes? How we are planning to further develop euro banknotes and why we will be redesigning them over the next few years. 28:27 – Our guest’s “hot tip” for our listeners Our guest Martin Münd gives a tip for adding a banknote element to your summer holidays! Additional material: 20 years of euro banknotes and coins https://www.ecb.europa.eu/euro/20_years_of_euro/html/index.en.html Press release: Euro banknote counterfeiting at historically low level in 2021, January 2022 https://www.ecb.europa.eu/press/pr/date/2022/html/ecb.pr220128~d65c3326c2.en.html Catch me (if you can): assessing the risk of SARS-CoV-2 transmission via euro cash, July 2021 https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op259~33b180d450.en.pdf Europa series banknotes: security features https://www.ecb.europa.eu/euro/banknotes/security/html/index.en.html#feel European Central Bank https://www.ecb.europa.eu/home/html/index.en.html You can also listen to The ECB Podcast on SoundCloud, Spotify, Deezer, Stitcher, YouTube, Amazon Music and many more pod.link/ecbpodcast

Today our Governing Council decided on monetary policy, determining what’s needed to achieve stable prices in the euro area. Listen to President Christine Lagarde present today’s decisions. The statement also covers: - how the economy is performing - how we expect prices to develop - the risks to the economic outlook - the dynamics behind financial and monetary conditions Published and recorded during our press conference on 3 February 2022. Additional material: Our monetary policy statement at a glance, 3 February 2022 https://www.ecb.europa.eu/press/pressconf/visual-mps/2022/html/mopo_statement_explained_february.en.html Christine Lagarde, Luis de Guindos: Monetary policy statement (with Q&A), 3 February 2022 https://www.ecb.europa.eu/press/pressconf/2022/html/ecb.is220203~ca7001dec0.en.html Monetary policy decisions, 3 February 2022 https://www.ecb.europa.eu/press/pr/date/2022/html/ecb.mp220203~90fbe94662.en.html Combined monetary policy decisions and statement, 3 February 2022 https://www.ecb.europa.eu/press/pressconf/shared/pdf/ecb.ds220203.en.pdf European Central Bank https://www.ecb.europa.eu/home/html/index.en.html You can also listen to The ECB Podcast on SoundCloud, Spotify, Deezer, Stitcher, YouTube, Amazon Music and many more pod.link/ecbpodcast

Today our Governing Council decided on monetary policy, determining what should be done to achieve stable prices in the euro area. Listen to President Christine Lagarde present today’s decisions. The statement also covers: - how the economy is performing - how we expect prices to develop - the risks to the economic outlook - the dynamics behind financial and monetary conditions Published and recorded during our press conference on 16 December 2021. Additional material: Our monetary policy statement at a glance, 16 December 2021 https://www.ecb.europa.eu/press/pressconf/visual-mps/2021/html/mopo_statement_explained_december.en.html Christine Lagarde, Luis de Guindos: Monetary policy statement (with Q&A), 16 December 2021 https://www.ecb.europa.eu/press/pressconf/2021/html/ecb.is211216~9abaace28e.en.html Monetary policy decisions, 16 December 2021 https://www.ecb.europa.eu/press/pr/date/2021/html/ecb.mp211216~1b6d3a1fd8.en.html Combined monetary policy decisions and statement, 16 December 2021 https://www.ecb.europa.eu/press/pressconf/shared/pdf/ecb.ds211216.en.pdf Macroeconomic projections, December 2021 https://www.ecb.europa.eu/pub/projections/html/ecb.projections202112_eurosystemstaff~32e481d712.en.html European Central Bank https://www.ecb.europa.eu/home/html/index.en.html

What defines good leadership? Which skills do those who run banks need and how can we, as the supervisor, help choose the right people for the job? In this episode of The ECB Podcast, our host Katie Ranger and Frank Elderson, Vice-Chair of the Supervisory Board, discuss leadership and our role in selecting banks’ leaders. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 10 December 2021 and recorded on 8 December 2021. In this episode: 01:25 – Leadership in banks and beyond Which qualities define good leadership and why it is crucial that the right people are selected to run banks. 07:12 – The challenges facing banks and what they mean for their decision-makers The skills and attributes needed by banks’ board members to address major challenges, such as climate change and digitalisation. 12:24 – Diversity on banks’ boards How diversity can improve banks’ decision-making processes and resilience, and what can be done to foster greater diversity on their boards. 14:34 – Our role in ensuring banks are run by the right people What we do, as the supervisor, to assess the suitability of banks’ board members, what fit and proper supervision is, and why we have revised our fit and proper guide. 20:43 – Making sure all board members play their part How a bank’s board is like a rowing team and why its members must be accountable, both individually and collectively, for what happens within the bank. 24:31 – Our guest’s “hot tip” for our listeners Our guest Frank Elderson shares his tips on how each of us can foster a more diverse and inclusive environment. Additional material: Guide to fit and proper assessments, December 2021 https://www.bankingsupervision.europa.eu/ecb/pub/pdf/ssm.fit_and_proper_guide_update202112~d66f230eca.en.pdf Banking supervision blog post by Frank Elderson and Elizabeth McCaul, ECB Banking Supervision seeking greater diversity within banks, 15 June 2021 https://www.bankingsupervision.europa.eu/press/blog/2021/html/ssm.blog210615~31020cb68d.en.html Explainer: What is fit and proper supervision? https://www.bankingsupervision.europa.eu/about/ssmexplained/html/fap.en.html Supervision Newsletter, Bolstering fit and proper supervision, 18 November 2020 https://www.bankingsupervision.europa.eu/press/publications/newsletter/2020/html/ssm.nl201118_3.en.html The ECB Podcast: Fighting biases and empowering women: A conversation on female leadership and gender equality, 8 March 2021 https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod210308_episode15.en.html The ECB Podcast: Tackling climate change as a central bank: Between motivation, obligation and limitation, 12 May 2021 https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod210512_episode16.en.html The ECB Podcast: A conversation about female empowerment, the need for an inclusive recovery and transatlantic cooperation, 15 July 2021 https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod210715_episode18.en.html ECB Banking Supervision https://www.bankingsupervision.europa.eu/home/html/index.en.html European Central Bank https://www.ecb.europa.eu/home/html/index.en.html You can also listen to The ECB Podcast on SoundCloud, Spotify, Deezer, Stitcher, YouTube, Amazon Music and many more pod.link/ecbpodcast

How has the pandemic affected Europe’s banks? Do they have the right tools to deal with what lies ahead? In this episode of The ECB Podcast, our host Katie Ranger explores these questions with insights from discussions at the 2021 ECB Forum on Banking Supervision. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 16 November 2021 and recorded on 11 November 2021. In this episode: 01:41 – What the pandemic has meant for banks The challenges that the coronavirus pandemic presents to the economy and the support measures put in place by banks. 03:13 – Why supervisors are keeping a close eye on credit risk How the support measures adopted during the pandemic might affect banks’ credit risk and what we, as supervisors, recommend they do to minimise it. 6:48 – How the climate crisis is relevant for banks How physical and transition risks affect banks, what the role of banks will be during the transition to a greener economy and how they are doing in assessing climate risks. 11:08 – What is needed to deepen integration in the banking sector What progress has been made in completing the banking union, how this has been affected by the pandemic crisis and what still needs to be done to deepen integration. Additional material: ECB Forum on Banking Supervision 2021: Welcome address by Christine Lagarde, ECB President – YouTube recording, 9 November 2021 https://www.youtube.com/watch?v=6L1maMkK_l0 ECB Forum on Banking Supervision: ECB Forum on Banking Supervision 2021: Conversation with Andrea Enria, ECB Supervisory Board Chair – YouTube recording, 9 November 2021 https://www.youtube.com/watch?v=Z7XnY9en6ag ECB Forum on Banking Supervision 2021: Credit risk: managing through the pandemic – YouTube recording, 9 November 2021 https://www.youtube.com/watch?v=igMB9ZE4kLc ECB Forum on Banking Supervision: Climate change: are banks and supervisors prepared? – YouTube recording, 10 November 2021 https://youtu.be/GAw3wKUBlK8 ECB Forum on Banking Supervision: European banking: necessary steps to deepen integration – YouTube recording, 10 November 2021 https://youtu.be/IVIvxh7t6Og Remarks by Christine Lagarde at the ECB Forum on Banking Supervision, 9 November 2021 https://www.ecb.europa.eu/press/key/date/2021/html/ecb.sp211109_1~6cdc943638.en.html European Central Bank website https://www.ecb.europa.eu/home/html/index.en.html You can also listen to The ECB Podcast on SoundCloud, Spotify, Deezer, Stitcher, YouTube, Amazon Music and many more pod.link/ecbpodcast

What is causing the rise in inflation we are seeing at the moment? And which trends could have an impact on prices in the future? In this episode of The ECB Podcast, our host Katie Ranger looks for answers to these questions in the discussions held at the 2021 ECB Forum on Central Banking. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 6 October 2021 and recorded on 4 October 2021. In this episode: 01:32 – The economic recovery after the pandemic How the world economy is doing after the slump in economic activity caused by the coronavirus pandemic and how this is affecting prices. 03:11 – Why has inflation been persistently low over the last ten years? Different factors have contributed to low inflation, including more people entering the job market, slower wage growth and a reluctance to put up prices. 4:32 – Reasons behind the recent inflation spikes The rise in inflation is linked to the reopening of the economy, where pent-up demand is meeting supply bottlenecks, and to base effects. These temporary factors are not expected to last. 9:29 – Trends that could impact inflation in the future Trends are emerging that could affect prices in the future. These include changes in the demand for services after the pandemic and the effects of digitalisation on globalisation. The green transition may also impact inflation in coming years. Further reading Speech by Christine Lagarde: Monetary policy during an atypical recovery, 28 September 2021 https://www.ecb.europa.eu/press/key/date/2021/html/ecb.sp210928~4cc57f558d.en.html Post on The ECB Blog by Isabel Schnabel: The spectre of inflation, 14 September 2021 https://www.ecb.europa.eu/press/blog/date/2021/html/ecb.blog210914~a514f7c553.en.html Speech by Isabel Schnabel: New narratives on monetary policy – the spectre of inflation, 13 September 2021 https://www.ecb.europa.eu/press/key/date/2021/html/ecb.sp210913~031462fe79.en.html Christine Lagarde: Monetary policy statement – ECB press conference, 9 September 2021 https://www.ecb.europa.eu/press/pressconf/2021/html/ecb.is210909~b2d882f724.en.html ECB Forum on Central Banking: Policy panel – YouTube recording, 29 September 2021 https://www.youtube.com/watch?v=QvIFhzLOuCg ECB Forum on Central Banking: The future of inflation – YouTube recording, 28 September 2021 https://www.youtube.com/watch?v=w6KQi2tnmIM The ECB Podcast: Inflation: on porridge, prices and the new normal, 31 October 2019 https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod191031_episode2.en.html European Central Bank website https://www.ecb.europa.eu/ You can also listen to The ECB Podcast on SoundCloud, Spotify, Deezer, Stitcher, YouTube, Amazon Music and many more pod.link/ecbpodcast

Our inflation objective and how price changes are measured, employment, climate change… These are just some of the topics we’ve looked at during our strategy review, the outcome of which we revealed in July. In this episode of The ECB Podcast, our host Katie Ranger discusses the review with Chief Economist Philip R. Lane. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 25 September 2021 and recorded on 20 September 2021. In this episode: 00:10 – Our strategy review What is behind our recent strategy review and why we carried it out now. 02:26 – The new price stability objective Why we have adopted the new price stability objective of 2% and why it’s important that it is symmetrical, clear and understandable. 07:20 – How to measure inflation Who measures inflation and how, and why home ownership costs should be included in the price index. 10:49 –Employment and the strategy review Why the employment situation is important for our monetary policy, and how our decisions impact jobs. 19:17 – Our guest’s “hot tip” for our listeners Home in the world by Amartya Sen: the economist and philosopher recounts his first thirty years of life in a memoir. This year’s ECB Forum on Central Banking on 28 and 29 September 2021 includes some interesting panel discussions, focussing on the future challenges for monetary policy. Further reading: Strategy review key topics, written in plain language https://www.ecb.europa.eu/home/search/review/html/workstreams.en.html Background material for our strategy review (occasional papers) https://www.ecb.europa.eu/pub/html/strategy_review.en.html ECB Forum on Central Banking https://www.ecb.europa.eu/pub/conferences/html/20210928_ecb_forum_on_central_banking.en.html European Central Bank website https://www.ecb.europa.eu/home/html/index.en.html You can also listen to The ECB Podcast on SoundCloud, Spotify, Deezer, Stitcher, YouTube, Amazon Music and many more pod.link/ecbpodcast

We at the ECB conducted our first economy-wide climate stress test this year. What are the results? And what do they mean for people, companies, and banks? In this episode of The ECB Podcast, our host Katie Ranger discusses these questions with Vice-President Luis de Guindos and Irene Heemskerk, the head of our climate change centre. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 22 September 2021 and recorded on 9 September and 15 September 2021. In this episode: 01:11 – Our first economy-wide climate stress test How climate risks affect people, companies and banks in the euro area, how our climate stress test was carried out, and its main results. 11:24 – Our role as a central bank against climate change How climate change affects both financial and price stability, and the actions foreseen in the climate action plan we revealed in July 2021, following our strategy review. 13: 25 – Our first guest’s “hot tip” for our listeners Our guest Luis de Guindos shares what motivates him to work in the fight against climate change: solidarity with future generations. 15:10 – The work of the climate change centre The purpose of our climate change centre, how things are going so far and what kind of people work there. 19:31 – The next steps of our climate action plan How the economy-wide climate stress test will feed into the two other stress tests that we will conduct in 2022, on banks and on our own balance sheet. 26:14 – Our second guest’s “hot tip” for our listeners Our guest Irene Heemskerk shares the story behind a picture in her home office that clearly shows how disastrous the consequences of climate change can be. Further reading: Firms, banks benefit from early adoption of green policies, ECB’s economy-wide climate stress test shows https://www.ecb.europa.eu/press/pr/date/2021/html/ecb.pr210922~59ade4710b.en.html ECB economy-wide climate stress test https://www.ecb.europa.eu/pub/pdf/scpops/ecb.op281~05a7735b1c.en.pdf ECB Blog post by Luis de Guindos: Shining a light on climate risks - the ECB’s economy-wide climate stress test https://www.ecb.europa.eu/press/blog/date/2021/html/ecb.blog210318~3bbc68ffc5.en.html The ECB climate change action plan https://www.ecb.europa.eu/press/pr/date/2021/html/ecb.pr210708_1~f104919225.en.html The ECB climate change roadmap https://www.ecb.europa.eu/ecb/climate/roadmap/html/index.en.html European Central Bank https://www.ecb.europa.eu You can also listen to The ECB Podcast on SoundCloud, Spotify, Deezer, Stitcher, YouTube, Amazon Music and many more pod.link/ecbpodcast

Hawks, doves, owls, swans, bulls and bears … even ostriches. What connects these animals to central banking? How can they help us find our way around the world of economics and finance? Our host Katie Ranger talks about these questions with communications advisor Gabriel Glöckler on The ECB Podcast. The views expressed are those of the speakers and not necessarily those of the European Central Bank. Published on 16 August 2021 and recorded on 29 June 2021. In this episode: 1:40 – Why animal metaphors are used in central banking How animal metaphors can help make central banking more accessible, what they mean and why they are used so often. 4:01 - Hawks, doves and owls in monetary policy How these two animal metaphors are used to describe policymakers’ attitudes towards monetary policy, what it means to make a hawkish or a dovish comment, and where the owl comes in. 9:22 – Black swans, green swans and unexpected events Which events can be qualified as black swans and what green swans are in the language of finance and economics. 14:47 – A bear market or a bull market What’s behind the bull and bear statues outside the Frankfurt Stock Exchange, and how these two animal metaphors are used to describe what’s happening in financial markets. 18:38 – Our guest’s “hot tip” for our listeners The Maradona Theory of Interest Rates: What footballer Diego Maradona has in common with interest rates. Further reading: Maradona Theory of Interest Rates https://www.bankofengland.co.uk/-/media/boe/files/speech/2005/monetary-policy-practice-ahead-of-theory European Central Bank www.ecb.europa.eu You can also listen to The ECB Podcast on SoundCloud, Spotify, Deezer, Stitcher, YouTube, Amazon Music and many more https://pod.link/ecbpodcast