commission ’ s priorities for financial services policy over the next five years. 2 finally, the ecb also seeks to provide economic analysis and research on financial integration, in order to raise the awareness of economic agents and policy - makers about the benefits of financial integration for the euro area economy. the ecb is in a unique position to produce in - depth economic analysis and comprehensive statistics for the euro area as a whole, by drawing on the expertise of its staff, by relying on direct interaction with major financial players and by building on its role as a supranational institution at the helm of the eurosystem. the publication we are presenting today belongs to this fourth type of initiative. in discussions on european financial integration, the relevant arguments are often of a qualitative nature. however, in order to properly monitor and assess the state of financial integration, quantitative information in the form of indicators – as contained in our report – is not only useful, but essential. we wanted to devise a way in which to capture, in quantitative terms, the various dimensions of financial integration and to have a toolbox at our disposal to monitor developments, measure progress and assess the state of integration of the different components of the european financial system, that is, financial markets, financial institutions and financial infrastructures. the indicators that we have compiled focus on markets and cover the main financial market segments of the euro area, ranging from the money market to retail loans and wholesale equity trading. the statistics indicate that the degree of integration varies greatly depending on the market segment. the unsecured money market has been fully integrated since shortly after the introduction of the euro. the repo market is also highly integrated, albeit to a lesser extent. government bond markets have integrated significantly. the indicators for the corporate bond market, which has grown considerably since the introduction of the single currency, also point to a high degree of integration. progress has also been made in the see http : / / www. ecb. int / pub / pdf / other / lamfalussy - reviewen. pdf. see http : / / www. ecb. int / pub / pdf / other / ecgreenpaperfinancialservicespolicy2005en. pdf. 2 / 3 integration of euro area equity markets, in which equity returns are increasingly determined by common factors. however, banking markets are generally much less integrated. these general findings – and i only wanted to refer to them very briefly – already

for all other sources of risk that we supervise. an approach that will be here to stay. our interactions with the banks we supervise show that they are also making progress, and they have finally started to put in place the basic infrastructure needed to identify, monitor, assess and control climate - related and environmental risks. 1 / 2 bis - central bankers'speeches all progress should be celebrated. for the banks under our supervision, we are contributing to this by proactively sharing the good practices we see. but let me be clear that all progress is ultimately a means to an end. and that end can be one thing only : practices and policies that are fully aligned with a paris - compatible transition path. this is why, when taking the first set of climate - related actions in our monetary policy, we committed to regularly reviewing all the relevant measures to ensure that they continue to support the decarbonisation path to reach the goals of the paris agreement and the eu's climate neutrality objectives. this is also why last week ecb banking supervision communicated deadlines by which we expect banks'risk management strategies to be fully aligned with our supervisory expectations in the area of climaterelated and environmental risks. this is why, despite the progress we have seen, i will continue to stress that the banks under our supervision need to step up their game and truly manage climate - related and environmental risks in the same way we expect them to manage any other material risk. this is why we support the european commission's proposal that banks should be legally required to put in place prudential transition plans which enable them to assess their risk exposures and the effectiveness of their risk controls in a world that is transitioning to net zero. this is why we ourselves will soon start to disclose data on climate risk exposure and the carbon footprint of our own asset portfolios, a commitment that covers all national central banks in the eurosystem. and this is why we urgently need to continue moving ahead. our road to sharm el - sheikh has been productive. but we cannot assess the success of our actions based on our point of departure. we need to judge our progress based on what is necessary to reach our destination in time. and we unfortunately cannot say that we are ahead of schedule. droughts, floods, heatwaves, and biodiversity loss are undeniably on the rise as very real manifestations of the climate and environmental crises. at the same time, in the eu, we are seeing that governments are all