this statutory deposit protection at the minimum european level, there exist additional, private protection schemes operated by the various categories of banks. not least in the wake of the bank run on northern rock last summer, the european commission is considering a revision of the deposit protection directive. it is aiming for a greater degree of harmonisation. in particular, this concerns a higher level of minimum protection and the abolition of the co - insurance. as the discussion in the eu now stands, this would mean that the principle of subsidiarity would be basically retained. we at the bundesbank attach great importance to this. deposit protection has to be consistent with the specific features of the national banking systems. ii fundamental institutional questions with the distribution of powers among the sovereign regulatory levels, i am now very close to the second set of fundamental issues. i would now like to talk about a number of fundamental institutional questions about the stabilisation of the financial system. i am doing this because, during the financial crisis, it has become clearer to me than ever before how much institutions matter. i am therefore concerned with the institutional framework for the monetary, supervisory and regulatory infrastructure. in the usa, the shortcomings of governance in the financial system have been revealed for all to see in the crisis, at the same time posing two major challenges. the first challenge arises from the fragmented structure of financial supervision. in some cases, however, quite new institutional arrangements – that is, institutions – have to be put in place. with its “ blueprint ”, the us ministry of finance has now presented an ambitious but cogent overall strategy for a longer - term reform of financial supervision. it envisages a radically overhauled institutional structure with a complete change of design in its tasks. i see one particularly important aspect of this blueprint in that fact that the fed in the role of a “ market stability regulator ” would, for the first time, institutionalise a primarily macro - oriented perspective on the financial system. i await with keen interest how this debate will proceed. with regard to the second institutional challenge in the usa, namely the review of the monetary policy instruments, a lot has already happened. to begin with, the fed was not so well equipped with instruments for the liquidity policy action necessitated by the subprime crisis. the fed was very quick to create efficiently functioning instruments in the crisis, however. when i now look at the institutional structure for financial stability in germany and in the eurosystem, i would like

is empirical evidence that harmonised insolvency rules can increase cross - border debt and equity investment. [ 7 ] in this context, the european commission in december 2022 published a proposal for a directive to align major aspects of insolvency laws. let me touch upon another building block of the capital markets union : the eu ( european union ) securitisation market. in january, germany and france called for a review of the regulatory framework. there is no doubt that securitisation is a complex instrument. hence, risk - sensitive and prudentially sound treatment of these transactions and investments is important. but a risk - sensitive build - up of europe ’ s securitisation market could be one viable way of bridging the gap between bank loans and capital markets. using securitisations, banks can bundle and re - package loans into tradeable securities and place them or their respective credit risks in the capital markets. this gives banks regulatory capital relief for further lending and distributes credit risk among bank and non - bank market participants. to free up the potential of capital markets and fully reap the benefits of european integration, it is important to make progress on creating a single european capital market. 4 conclusion let me sum up : the eurosystem is tightening its monetary policy stance to bring inflation back to target. it is important that the financial system adapts to the changing monetary policy and macroeconomic environment and manages the risks that arise from these shifts. as the recent turmoil in the financial market has shown, strong banking supervision is a central pillar of financial stability. banking supervisors will continue to carefully monitor developments in the banking sector. progressing towards a single european capital market can help make the eu ( european union ) ’ s financial system more stable, resilient and competitive. that is what europe needs : a stable, resilient and competitive financial system. footnotes : 1. ecb ( european central bank ) banking supervision : supervisory banking statistics, fourth quarter 2022, 12 april 2023. 2. patrick mchenry : statement on regulator actions regarding silicon valley bank, united states house of representative, financial services committee, 12 march 2023. 3. andrea enria : a new stage for european banking supervision, keynote speech at 22nd handelsblatt annual conference on banking supervision, frankfurt am main, 28 march 2023. 4. ecb ( european central bank ) banking supervision, single resolution board, european banking authority : statement on the