It generates new types of risk, which constitute challenges to central banks and supervisors of financial markets. Globalization of financial markets and the related rapid growth of turnover in credit derivatives, such as CDOs or default swaps, force a focus on understanding, what types of risk are generated in particular market segments. Such risks should be continuously analysed by central banks and supervisory authorities. It may happen in the future that the social groups which incur losses in the process of globalization will force the decision-makers to take up protectionist actions, which may contribute to significant lowering of the future economic growth, through limiting the benefits from international trade. Therefore, economic policy, especially in the countries with a large share in the global product, should be  44  Schoenmaker D., Oosterioo S. “Cross-Border Issues in European Financial Supervision”, in: Mayes D., Wood G. (editors) “The Structure of Financial Regulation”, London 2005. 45  Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate and amending Council Directives 73/239/EEC, 79/267/EEC, 92/49/EEC, 92/96/EEC, 93/6/EEC and 93/22/EEC, and Directives 98/78/EC and 2000/12/EC of the European Parliament and of the Council. 46  The Act on supplementary supervision over credit institutions, insurance companies and investment companies in a financial conglomerate of 15 April, 2005, (the Journal of Laws No. 83/2005, item 719).

The terrorist attack of 11 September 2001 has revealed how far-reaching implications for the international payment system may be brought about by switching off a large-value payment system in a single country. In the circumstances of the increasingly integrated financial markets, central banks must also cooperate more closely and have their contingency plans in place to inject liquidity to the global financial system in a crisis situation. 48 The private sector goes even further to suggest that in a crisis situation central banks should extend intraday credit facility to all banks (not only the domestic ones). Intraday credit could be collateralized by foreign currencies or securities denominated in foreign currencies – cross-border collateral pool facilities. 49  Conclusions Ladies and Gentlemen, globalization of financial markets, trade, manufacturing, services and knowledge is a great opportunity for the global economy. Owing to this process, the developing countries may modernise and grow faster than they have ever done before. On the other hand, both manufacturers and consumers in the developed countries take advantage of the access to the huge global labour market, which makes it possible to lower the costs of manufacturing, enhance productivity and – consequently – lower the prices of many goods and services. Both consumers and producers are also beneficiaries of globalization of the financial markets, which offer a wide range of products and enable a better adjustment of the risk profile and the expected return or cost to the preferences of investors and borrowers. Globalization also has its drawbacks.