##bahn ” or “ highway ” system, whereas the united states created such a system almost 10 years ago. the aim of the european post - trading market must therefore be to create one single market across europe which is as secure, efficient and cheap as domestic markets are today. the eurosystem takes the view that today ’ s challenges are best tackled by involving market participants in solving the current economic and financial gaps. the eurosystem is acting as a market catalyst and playing a unique facilitation role, bringing together market participants to create a truly integrated european post - trading market. the eurosystem achieved a great success by providing – in the form of target2 – borderless core infrastructures for real - the difference between the price of an eu bank purchasing a settlement service by a european settlement service provider and the price an us bank pays for the equivalent settlement service from a us service provider. time settlement in central bank money. further support for the single market will come from the streamlining of collateral management systems through the ccbm2 ( collateral central bank management ) project. in addition, the target2 - security ( t2s ) project aims at building on the target2 system and brings securities transactions settlement with pure cash settlements together across europe. these eurosystem initiatives joins other european initiatives, such as the code of conduct and the markets in financial instruments directive ( mifid ), in helping to fulfil the objectives set out by the lisbon agenda for the provision of better services to issuers and investors. we firmly believe that these concerted initiatives will speed up the long awaited market integration and foster competition thereby creating opportunities for cost savings and allowing market participants to select and choose posttrade partners irrespective of their location within the single market. this also requires a clear roadmap for securing the “ safety and soundness ” 2 of post - trading systems from a european perspective and for the relevant authorities to define common practices compatible with a single market, including the dismantling of current legal and fiscal barriers, in particular, national differences in the legal treatment of securities and actions on conflict - of - laws. this is in conformity with the recommendations of the giovannini group findings, which examined the eu post - trading sector and identified 15 barriers to be removed in order to ensure and efficient cross border clearing and settlements in the context of completing the single market ; one of which relates to the current restrictions on the location of securities ( barrier 9 ), which limits the

in this context, it seems quite difficult to speak of a credit crunch or of a comparative hardening of credit conditions in belgium. nevertheless, given the recent trend towards bank consolidation, a clear understanding of how banks succeed in combining the benefits of large - scale operations without losing the close relationships with their clients is required. these questions as to the future equilibrium between banks and financial markets will be tackled during our first session today. these recent financial developments will have an impact on all financial tra nsactions and on the whole spectrum of financial firms. but the benefits gained from increased financial integration and efficiency will extend well beyond the financial sector. actually, the real economy may be expected to benefit most, because a more efficient financial system implies higher expected returns for sectors with a financial surplus and lower borrowing costs for investing in new projects that need external finance. this should facilitate the re - allocation of capital towards new developing sectors and firms that have a high growth potential. the real effects of financial market liberalisation will be envisaged during the second session of our conference. increasing financial efficiency while maintaining financial stability is not only a major objective but also a challenging task. in order to meet this goal we should carefully design and monitor market organisation and set up appropriate regulatory and supervisory arrangements. recent research has shown the important role market organisation or market micro - structure plays as to the efficiency and the stability of financial markets, and more in particular as to market liquidity. insufficient market liquidity during periods of tension may exaggerate price volatility and increase risks of contagion over markets and institutions. the availability of broad market liquidity under all circumstances is therefore crucial to reap the rewards from the expansion and the integration of financial markets. the third session in the conference will deal with these issues. financial services and bank management in general have become increasingly sophisticated and complex. information technology has fostered the use of quantitative management tools to evaluate credit and market risks as well as other risks, such as liquidity and operational risks. current banking regulations should be adjusted to take into account the specificity of bank risks. they should provide the proper incentives for financial firms to strengthen their internal control and risk management systems. the new basel ii solvency requirements for instance develop a more comprehensive and risk - sensitive approach to banks ’ capital requirements and a strengthened role of market discipline. as a member of the basel committee on banking supervision, the bank has been deeply involved in the design of these requirements. as the new requirements will have to