9 The global financial market enables business entities, including banks, to raise funds for business development from a larger number of investors than it would have been possible on domestic markets. For instance, in many smaller EU countries, a significant number of bank transactions is carried out with foreign partners. 10 Access to the international capital market for banks and other financial institutions translates not only to the possibility of development, but also to the pressure on improvement of efficiency. The growing  4  Galati G. “Settlement risk in foreign exchange markets and CLS Bank”, w: “BIS Quarterly Review” December 2002, Bank for International Settlements, pp. 55-65. 5  “CLS - purpose, concept and implications”, in: “ECB Monthly Bulletin”, January 2003, European Central Bank, pp. 53-65. 6  Rajan R. “Has financial development made the world riskier?”, Working paper 11728, NBER 2005. 7  Stulz R. “Globalization of equity market and the cost of capital”, Working paper 7021, NBER 1999. 8  Mishkin F. “Is financial globalization beneficial?”, Working paper 11891, NBER 2005. 9  Hardouvelis G., Malliaropulos D., Priestley R., “The impact of globalization on the equity cost of capital”, CEPR Discussion paper 4346, 2004. 10  Schoenmaker D., Oosterioo S. “Cross-Border Issues in European Financial Supervision”, in: Mayes D., Wood G. (editors) “The Structure of Financial Regulation”, London 2005. 8  BIS Review 60/2006  efficiency and better risk management improves the security of deposits placed with banks. Foreign competition is also an important catalyst for dissemination of financial innovations.

As regards expenditure, 28% of interviewees live in households whose spending has outpaced income over the past 12 months, a percentage that is in line with the average observed in OECD and EU countries. 51% financed this shortfall resorting to savings, and 35% through informal credit (friends, employer, etc.). As in the foregoing cases, differences were observed in terms of educational level and level of income. As both levels increase, the percentage of instances in which spending has exceeded income diminishes and the percentage of cases where greater spending is financed with savings increases. Undoubtedly, financial behaviour does not depend solely on financial literacy, but is also influenced by other circumstances; but, in light of some of the above-mentioned results, I do believe there is clearly room for improvement in the field of financial education in Spain, and that we should continue to strive in this direction. Financial education in a context of technological innovation and developments Giving priority attention to financial education is, moreover, particularly significant in the current context of financial innovation. Technological developments are changing the way in which customers relate to financial institutions and how they take up financial products. And this, though it has attendant advantages, also entails risks. Greater financial culture, greater awareness of the new reality and a greater development of the general public’s digital competences can help mitigate these risks. 5/7  I would like to refer, in particular, to three examples of these risks.