But greater competition is absolutely necessary to stimulate financial innovation. In addition, it translates in a market structure that is more attractive from a financial stability perspective and easier to oversee from a supervisory standpoint. So, to conclude my second point, the completion of the regulatory decade to strengthen banking financial intermediation is not the end of the story; it’s just the end of the beginning. The transformation of financial intermediation is full of opportunities but it also highlights the limitations of sectoral and entity-based regulations and the need to adapt regulation and supervision to a morphing financial intermediation. To manage the financial stability risks stemming from an unbundled financial intermediation model, what we need is to develop: -  First, well-articulated and complementary regulation and supervision going from microprudential to macro-prudential, from prudential to consumer protection, anti-money laundering, data protection and anti-trust laws;  -  Secondly, a technology-neutral stance, which accommodates Fintech innovation while preserving financial stability; and  -  Thirdly, an activity-based regulation and supervision, to ensure a level playing field between all entities pursuing the same financial activity. 3- The need to advance the European regulatory agenda to support a more diversified and integrated intermediation model All these new trends in financial intermediation – digitalisation, non-bank financial intermediation, Brexit – plead for advancing the European agenda to support a more diversified and integrated intermediation model. At the same time, these changes represent an incredible opportunity to restructure the European financial system in order to unleash growth and innovation.

Second, the development of pan-European individual retirement savings products to increase workers’ mobility and offer a new source of long-term financing for European companies. Third, the reinforcement of ESMA which is necessary to supervise capital markets in a harmonised way, while duly involving national authorities when appropriate. Completing the Banking Union and accelerating the Capital Markets Union will therefore be essential in order to lay the basis for a sound, diversified and integrated financial intermediation. Yet, we should go even further and achieve a real “financial Eurosystem”, made up of stronger and pan-European financial institutions and shared market infrastructures. Brexit, in this sense, represents an opportunity. Let’s be clear: there will not be a single City for the continent, but rather an integrated polycentric network of financial centres, with specialisations based on areas of expertise. Our ability to adequately regulate and supervise these changes in financial intermediation will be determinant for growth and innovation. Europe must effectively transform its own savings, in order to enhance its ability to finance the real economy. This is what Governor Villeroy de Galhau calls the Financing Union for Investment and Innovation. This involves better steering the euro area’s abundant savings to absorb shocks within the euro area more effectively and 8/9  to meet investment and innovation needs in fields such as digital technology, energy transition and the equity financing of SMEs.