Financial integration helps avert shocks - Trichet
"Financial integration is... relevant for the stability of the financial system, as it improves the financial system's ability to adsorb adverse disturbances," he said in a speech to the "SEPA Summit" at the Euro Finance Week.
"Financial integration also increases the potential for greater and more sustainable economic growth," he added.
"For the ECB, progress in financial integration is crucial and the status quo in this field is not an option," Trichet said.
"The banking industry is expected to be confronted with initial investment costs in particular, which will clearly have an impact on the business of the banking industry," he said.
But he added: "In the long term, when national schemes are replaced by SEPA schemes, the costs for banks are expected to decrease because of potential cost savings, for example from rationalisations, economies of scale and innovations."
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: www.centralbanking.com/subscriptions
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Financial Stability
UAE launches support programme for country’s banks
Central bank releases capital buffers and provides capital rule relief to help lenders during conflict
ECB says AI risk monitoring should not be a one-way street
Bank wants to exchange information on lenders’ AI model risks with market surveillance supervisors
HKMA deputy says credit risks to remain ‘complex’ in 2026
Yuen notes continued pressure on Hong Kong’s commercial real estate market
No signs yet of war triggering financial distress, analysts say
Markets have been orderly so far, but picture could change if Strait of Hormuz remains shut
Working group minutes: strengthening crisis management
Maintaining a strong team of resolution experts can be difficult for smaller central banks
Hedge funds and private credit pose stability risks, says Macklem
Canadian governor says firms’ growing importance could have knock-on effects in times of stress
Work on improving resilience ‘not finished’ – BIS’s de Cos
Head of global watchdog calls for regulators to monitor non-bank sector as lending migrates
Zambia publishes list of banks with deposit protection
Disclosure by central bank follows establishment of long-delayed insurance scheme last October