Session 3 of the ECB Forum on Central Banking in Sintra, Portugal, 2 July 2025. Chair: Luis de Guindos, Vice-President, European Central Bank. Author: Loriana Pelizzon, Professor, Deputy Scientific Director, Leibniz Institute for Financial Research SAFE and Professor, Goethe University Frankfurt and Ca’ Foscari University of Venice. Discussant: Nicola Cetorelli, Financial Research Advisor and Head of Financial Intermediation, Federal Reserve Bank of New York.