, j. ( 2017 ), “ measuring the natural rate of interest : international trends and determinants ”, journal of international economics, 108 ( supplement 1, may ) : s59 – 75. 12 andersson et al. ( 2018 ), op. cit. 13 european banking authority ( 2018 ), eba report on the impact of fintech on incumbent credit institutions ’ business models, eba, london. 14 see nikolov, p. ( 2016 ), “ cross - border risk sharing after asymmetric shocks : evidence from the euro area and the united states ”, quarterly report on the euro area, 15 ( 2 ) : 7 - 18, directorate general economic and financial affairs ( dg ecfin ), european commission, brussels. 15 andersson et al. ( 2018 ), op. cit. 5 / 5 bis central bankers'speeches

especially the size, distribution and concentration of risks they allow. increased transparency on these three issues could be useful for risk managers in both the private and public sectors, and for the market in general. 3 ) credit derivatives and common market standards let me now move to the third and last point, namely to try to understand the main developments in credit derivatives with regard to market practices. given that the credit derivatives market has a global, innovative, complex and predominantly wholesale nature, it may be argued that global market standards are particularly well suited to meet related regulatory challenges. isda is widely recognised as playing a crucial role in promoting market standards and mitigating legal risk. in this regard, there can be no doubt that the development of isda ’ s library of standardform contracts for credit derivatives has played a substantial role in promoting the development of this market. it is important that market participants clearly understand the precise rights and obligations which they assume when entering into credit derivatives transactions, as standardised contracts do not always work out in the way that contracting parties anticipate. also, in some instances, case law has demonstrated that the courts can take divergent views regarding the meaning of isda ’ s definitions of credit derivatives. these matters have been swiftly addressed by isda. turning to the overarching legal framework within which these standard - form contracts operate, the legal enforceability of close - out netting and collateral arrangements plays a central role in the smooth functioning of all over - the - counter derivatives markets, reducing counterparty risk. the need for a high counterparty risk management policy group ii ( 2005 ). degree of legal certainty regarding the validity and enforceability of such arrangements has long been reflected in the regulatory capital requirements under the basel capital accords. legislative recognition of close - out netting and collateral arrangements plays a positive role in supporting the evolution of derivatives markets. i note that the european commission, echoing the views of the european financial market lawyers group and isda, has recently stated that it intends to explore the possibility of further improving the general eu framework for netting. concerning other relevant ongoing initiatives, i would like to recall the current debate on international accounting standards. the ecb is contributing to the debate 12 and is aware that accounting standards can have a significant impact on the financial system, in particular via their potential influence on the behaviour of economic agents. the ecb ’ s opinion is that the introduction of the international financial reporting standards ( ifrs ), if implemented consistently and reliably, should