, the role of the government bond lending market in collateral transformation. estimated by the ecb as 110 basis points, as compared to 160 bp in the us. see : ecb ( 2019 ), the international role of the euro. craig, b. r., m. giuzio and s. paterlini ( 2019 ), the effect of possible eu diversification requirements on the risk of banks ’ sovereign bond portfolios. acemoglu, daron, asuman ozdaglar and alireza tahbaz - salehi ( 2015 ), “ systemic risk and stability in financial networks ”, american economic review, 105 ( 2 ) : pp. 564 - 608. alogoskoufis and langfield ( 2018 ), “ regulating the doom loop ”, esbr working paper, no 74. 5 / 8 one of the best ways of increasing the degree of diversification of banks ’ holdings of sovereign debt, without relying on complex regulations with possible unintended effects, is through the creation of a pan - european safe asset. but as i will now argue, the relevance of a euro - denominated safe asset for strengthening our monetary union is not just linked to breaking the doom loop between sovereigns and banks, increasing diversification and strengthening the international role of the euro. it is also of paramount importance for the capital markets union project. eu regulation has done a significant job in harmonising investment and savings products across the european union. nevertheless, the completion of the capital markets union is hardly possible without a common benchmark for investors and firms at the euro area level. under the current framework, even highly diversified multinationals are linked to the sovereign of the host country. for example, the credit default swaps ( cds ) of the most important spanish non - financial multinationals ( firms with revenues from all over the world ) show a more than 90 % correlation with the cds of the spanish government. again, the benchmark for any firm is not a pan - european benchmark ( or the bund ), but the national one. a single, risk - free asset would likely become a common benchmark, allowing the prices of equities and bonds across the euro area to reflect fundamental risk more clearly. naturally, a european safe asset would facilitate the development and integration of capital and financial markets in the euro area, as flight - to - quality movements would no longer imply flight - to - core - countries movements. the existence

ways people think and do their banking business today. 9. the outcome of e - banking in pakistan will be gradual but the trends towards adoption of information technology are quite encouraging. transformation from traditional banking modes to modern ways of banking is taking place at a fast pace. a number of alternate delivery channels for provision of banking services like atms, credit cards, pos ( point of sale ) terminals, internet banking, debit cards already exist in our country to benefit the masses. currently, 93 % of the total bank branches are offering real - time online services. 10. i would like to acknowledge the efforts of tameer bank and telenor towards financial inclusion and deposit mobilization. it will not only bring economic prosperity but also help alleviate poverty and improve living standards of the people of pakistan. state bank of pakistan looks forward to the success and positive outcomes of easypaisa khushaal and expects more innovative products from tameer microfinance for promoting deposit mobilization and financial inclusion agenda. bis central bankers ’ speeches