this is all the more relevant in the banking union, where banks supervised by the single supervisory mechanism ( ssm ) are still subject to different accounting systems. in this area, progress is highly desirable and as a first step, i would support an initiative aiming to assess the quality and degree of comparability of national accounting standards and to promote further convergence. ( iii ) third, it remains necessary to ensure financial stability in the long run. the shift towards more market - based financing would entail several implications from a financial stability perspective. the development of alternative sources of funding, outside the banking system, brings a necessary diversification. yet the risks associated with disintermediation are clear, notably a limited assessment 3 of risks by investors or less ability to address difficult situations and gaps in supervision. in parallel, re - intermediation by non - banks raises level - playing field questions linked with uneven regulation and supervision across sectors and countries. the objectives of the capital markets union should serve as a backbone to the regulatory efforts made at the european level. before adopting new pieces of legislation, it is of utmost importance to thoroughly examine their impact. even though the analysis of the cumulative impact and the interactions between regulations is still in its early days, vigilance is required to ensure that the implementation of reforms does not result in a reduction of financial activities, such as market making that are vital for preserving market liquidity, financing investments and firms and ultimately the real economy. the foreseen banking structures reform and european financial transactions tax ( eftt ) are cases in point. in both projects, an appropriate approach should strike the right balance between limiting risks associated with trading activities and the need to preserve financial activities that are useful if not essential to the development of the real economy. doing so would be fully compliant with the overarching objectives of the capital markets union. bis central bankers ’ speeches having better integrated markets within the european union ( eu ) would also mean the emergence of more reciprocity issues as regards macroprudential policies. at the macro level, authorities should then closely review the potential additional vulnerabilities and risks attached to the cmu both at the domestic level and on a cross - border basis. authorities will also have to strengthen their analytical framework and possibly complement their macroprudential instruments which are mainly bank - based at the current juncture. i will conclude with some remarks regarding longer term work, namely how to harmonize further domestic legal regimes and the institutional architecture

44 % of net income compared with 57 % for their euro area peers. the challenge of bank profitability also raises another imperative : cross - border consolidation, which would allow genuine pan - european banking groups to carry out their activities more efficiently and better withstand the international competition. compared with the us market, the european banking sector remains fragmented : the 5 main european banks have a market share of just 20 % compared with more than 40 % for their us peers. meeting this target is in part the responsibility of public authorities : concrete progress finally needs to be made on the capital markets union, and the banking union needs to be completed in a true single banking market. it is particularly important to prevent geographical ring - fencing practices, which stop groups from managing liquidity and capital on a consolidated basis. these policies could prove dangerous in the event of a crisis as they would make it harder for entities within cross - border groups to support each other. that said, private sector actors do not need to wait for public authorities to do everything before starting to think about consolidation strategies. lastly, we also need to ensure that institutions are treated equally under international regulations. if we are to reach an agreement, two conditions must be met. the transposition of basel iii must be reasonable and take into account the application of the “ output floor ” at page 4 of 5 the highest level of consolidation. above all, the transposition must be fair and applied to the letter in all jurisdictions, including in the united states. let me be clear about one thing, however : the solution to our banking challenges is not deregulation but rather innovation ; not a step backwards – towards the financial crisis – but a leap forwards. iii. we need to remain fully mobilised with regard to two deadly risks : alm / ctf and cyber - security the fight against money laundering and terrorist financing ( alm / ctf ) calls for unwavering commitment. the 23 inspections carried out by the acpr revealed major failings in supervised entities ’ compliance with their aml / ctf and asset - freezing obligations. in 2018, the sanctions committee imposed nine sanctions, one of which amounted to eur 50 million. in parallel with the financial action task force ’ s assessment of france in 2020, the acpr will be closely involved in the implementation of a robust and renewed aml / ctf system at the european level. i have every confidence that the european banking authority – which is moving to paris on 13 june this year – will encourage