made by the g20 in 2009. the eu ’ s first central clearing obligation came into effect in june this year for certain interest rate derivatives, and will gradually be extended to other transactions. the esrb is monitoring the effects of this obligation on collateral demand and network structure, and will publish its findings in due course. 13 the esrb is also leading research into new macroprudential instruments beyond banking. one policy under consideration is the macroprudential use of margin and haircut requirements. 14 setting margins and haircuts in a conservative or countercyclical manner may help to contain the excessive build - up of leverage. in addition to “ leaning against the wind ”, margin and haircut requirements can also improve financial stability by mitigating illiquidity spirals. 15 this is particularly important given that an imbalance between the demand for and supply of liquidity could amplify or transmit shocks through the financial system. conclusion let me conclude. since the esrb ’ s foundation, europe has strengthened its regulatory, supervisory, and crisis management frameworks. the esrb has contributed to building a rich set of macroprudential policy tools for banks, 16 and continues to coordinate the calibration of those policies. the european financial system has thus become more resilient, with greater loss - absorbing capacity. the financial system is also adaptive. its adaptability is a strength, helping it to meet the challenges of the current environment. but it also means that policymakers must remain vigilant. the need for vigilance is why the esrb has always warned against policy inaction bias. macroprudential policy is still in its formative years, and policymakers are understandably cautious about deploying novel instruments. but when we see systemic risks, we should act. greater risk arises from inaction. so as you listen to the presentations at this conference, think about the implications for macroprudential policy in a changing world. is the macroprudential policy stance appropriate? are the tools at our disposal effective? your thoughts and comments will reflect the unique valueadded of the esrb : to bring policymakers together to exchange expertise and coordinate policy action, with the common aim of reducing the risk of financial crisis. on that note, i am pleased to open this first annual conference of the european systemic risk board. 1 pagano, m., s. langfield, v. acharya, a. boot, m.

has contributed to this development by reducing information costs, enhancing price transparency and eliminating exchange rate risk between countries in the euro area. nonetheless, in some fields, a lot a research study conducted by london economics estimated the benefits of the integration of european bonds and equity markets to be around 1 % of additional gdp over a ten - year period. london economics, 2002, “ quantification of the macroeconomic impact of integration of eu financial markets ”, report to the european commission. see also “ eu productivity and competitiveness : an industry perspective. can europe resume the catching - up process? ” by mary o ’ mahony and bart van ark, european communities, 2003, for a comparison of the financial sector contribution to annual labour productivity growth in the united states and the euro area. see p. asdrubali, b. sørensen and o. yosha, 1996, “ channels of interstate risk sharing : united states 19631990 ”, quarterly journal of economics vol. 111. see s. kalemli - ozcan, b. sørensen and o. yosha, 2004, “ asymmetric shocks and risk sharing in a monetary union : updated evidence and policy implications for europe ”, cepr discussion paper no. 4463. “ financial integration in europe ”, ecb, 2007. c. kok - sørensen and t. werner, 2006, “ bank interest rate pass - through in the euro area ; a cross - country comparison ”, ecb working paper no. 580. remains to be done, for example, that of increasing intra - euro area labour mobility and financial integration in retail banking. 3. adjustment processes in the euro area economic and financial integration are prerequisites for the smooth functioning of the euro area. in a monetary union like the euro area, where regional monetary and exchange rate policies are no longer available options, it is important to ensure that market adjustment mechanisms function properly. such mechanisms are needed in order to prevent a country or region, after experiencing a country - specific shock, from entering into a period of protracted low growth and higher unemployment, or into a long period of overheating. there are many factors that can improve the resilience of the euro area economies to adverse shocks. in this context, the ecb ’ s monetary policy contributes to the proper functioning of adjustment mechanisms within the euro area by ensuring price stability, by being credible in ensuring price stability and therefore by anchoring