ecb has had to identify the most effective policy tools for repairing these disruptions, while remaining within its mandate. financial integration is clearly in the interests of the market and it is strongly supported by the post - trade harmonisation initiatives that are taking place within the eu at the legislative, operational and business levels. these initiatives all aim to remove national barriers and thus reduce the fragmentation of the european post - trade landscape. the integration of market infrastructure, the harmonisation agenda triggered by t2s and the regulatory framework are the key elements of a coordinated harmonisation effort that complements and supports financial integration. bis central bankers ’ speeches it is through this lens that the topic of today ’ s conference should be analysed. key questions include : how can we contribute to improving post - trade harmonisation? what will this process change? and what actions can we take to benefit from it? the speakers will give us their answers and explore the various harmonisation initiatives, linking them with changes in the regulatory framework and in market infrastructure. last may, i participated, along with some of you, in the signing of the contractual agreements between the eurosystem and those csds that had decided to participate in t2s. i stressed that the fundamental objective of t2s is to contribute to making europe a better place to invest. let me say that this objective is not unique to t2s. it is the objective of all the harmonisation efforts that are being undertaken in the post - trade field, by all parties. it is definitely a joint effort, and what i see is not just the commitment of public authorities at the european or national level, but also the commitment of market participants, csds and ccps. i am sure that we all share the same goal, namely making europe stronger and more attractive for both domestic and foreign investment, thus stimulating and sustaining growth. through the coordinated action of so many stakeholders, financial markets will become safer, more transparent and, therefore, more efficient and integrated. dismantling legal and operational barriers, which is the aim of current eu legislative proposals and new infrastructure such as t2s, will benefit those who adapt their business models to a more competitive landscape. it is important to highlight that the benefits of t2s will be fully achieved if the current harmonisation efforts are successfully implemented at the european level and especially at the national level. let me be specific here by giving you a few examples. in terms of infrastructure, t2s is the necessary

allow foreign banks to continue to operate branches in the united states and would generally allow branches to meet comparable capital requirements at the consolidated level. similarly, this approach would not impose a cap on intra - group flows, thereby allowing foreign banks in sound financial condition to continue to obtain u. s. dollar funding for their global operations through their u. s. entities. it would instead provide an incentive to term out at least some of this funding in a way that reduces the risk of runs. requiring additional local capital and liquidity buffers, like any prudential regulation, may incrementally increase cost and reduce flexibility of internationally active banks that manage their capital and liquidity on a centralized basis. however, managing liquidity and capital on a local basis can have benefits not just for financial stability generally, but also for firms themselves. during the crisis, the more decentralized global banks relied somewhat less on cross - currency funding and were less exposed to disruptions in international wholesale funding and foreign exchange swap markets than the more centralized banks. 27 committee on the global financial system ( 2010 ), “ funding patterns and liquidity management of internationally active banks ”, cgfs papers no 39 ( basel : bis, may ), www. bis. org / publ / cgfs39. pdf. bis central bankers ’ speeches indeed, as noted earlier, in the wake of the crisis and of subsequent stresses, many foreign banks have modified their funding practices and business models. in revamping our approach, we will both be guarding against a return to pre - crisis practices and, more generally, ensuring that foreign banking operations in the united states that pose potential risks to u. s. financial stability are regulated similarly to domestic banking operations posing similar risks. conclusion the imperative for change in our foreign bank regulation is clear and, indeed, mandated by dodd - frank. of course, i have provided only an outline of the three key measures that will best navigate the middle course i have suggested. the all - important details are under discussion at the board. i anticipate that in the coming weeks we will complete our work and issue a notice of proposed rulemaking that will elaborate the basic approach i have foreshadowed. i look forward to hearing your general reactions today and more specific feedback after the board has adopted a proposed rule. bis central bankers ’ speeches