supply display some signals of improvement in lending conditions. the eurosystem bank lending survey shows that, in the second quarter of 2014, euro area banks, including italian ones, reported a net easing of credit standards on loans to enterprises for the first time since the second quarter of 2007. credit terms have been eased for households too, following a trend which started at the beginning of the year. while these signals are encouraging, there is still significant room for improvement as credit standards remain tight compared to the pre - crisis years, also in countries that did not experience any credit boom before the financial crisis. as mentioned, monetary policy is doing its part to reduce the cost of capital and secure more uniform credit conditions across the monetary union. an important contribution to sustain and accelerate the flow of credit to the economy will come from the tltros, as they contain specific built - in incentives for banks to on - lend to the private sector the funds obtained from the eurosystem. our own estimates for italy show that if banks fully took up the additional funding and passed on the cost advantage to borrowers, the beneficial impact on gdp could reach 0. 5 percent, a sizeable amount. the completion of banking union, including a smooth start of the single supervisory mechanism and a swift implementation of the single resolution mechanism, together with the continuation of an ordered process of balance sheet repair at european banks will help ensure the full functioning of credit markets. beyond banking union, it remains critical to address country - specific macroeconomic risks and vulnerabilities, such as weak competitiveness and current account imbalances, as well as to ensure sustained progress towards sound and sustainable public finances. reviving securitization reviving securitization has been long recognized as an essential complementary instrument and several initiatives have been debated ( also in a joint paper by the ecb and the bank of england ) to revive this market. in particular, it is necessary that simple and transparent securitizations be defined, and then promoted, in a consistent way across the eu. furthermore, a set of common rules applicable throughout the financial sector should aim to avoid arbitrage opportunities across financial intermediaries and types of securities. finally, more information on the characteristics of securitization and the underlying loans should be made available to investors. in order to achieve these objectives, there is now a need to agree on an eu - shared regulatory framework for high - quality securitization. bis central bankers ’ speeches developing

. a diverse set of buyers and sellers, supported by resilient infrastructure, should be able to confidently and effectively transact at competitive prices that reflect available market information and in a manner that conforms to acceptable standards of behaviour. the work to develop the code commenced two years ago, in may 2015, when the bis governors commissioned a working group of the markets committee of the bis ( which i chaired until early january this year ) to facilitate the establishment of a single global code of conduct for the wholesale fx market and to come up with mechanisms to promote greater adherence to the code. 3 our group comprises representatives of the central banks of all the major fx centres. my colleague matt boge at the rba has contributed enormous time and effort to the project. this work is also very much a public sector – private sector partnership. we have been ably and vigorously supported in this work by a group of market participants, chaired by david puth, ceo of cls. david ’ s group contains people from all around the world on the buy side, including corporates and asset managers, and the sell side, along with trading platforms, ecns and nonbank participants, drawing from the various fxcs and beyond. hugh killen from westpac has been the representative from australia on david ’ s group. all parts of the market have been 1 / 5 bis central bankers'speeches involved in the drafting of the code to make sure all perspectives are heard and appropriately reflected. there are two important points worth highlighting : first, it ’ s a single code for the whole industry and second, it ’ s a global code. on the first point, the code is supplanting the existing codes that have been present in the fx market, including the aci model code that is used in australia. the aci has recently confirmed its intention to utilise the fx global code and will make it a prerequisite for members to commit to adherence to the fx global code. 4 importantly, the code covers all of the wholesale fx industry. this is not a code for just the sell side. it is there for the sell side, the buy side, non - bank participants and the platforms ; its breadth is both across the globe and across the whole structure of the industry. hence the code is relevant for all of you here at this conference. the way it is relevant will depend on your engagement with the market. on the buy side it will also help to give you guidance as to what you