for the entire euro area. bank - issued pfandbriefe have also prevailed in competition ; they provide security independently of the individual debtor by having a public - sector body provide a guarantee or through the existence of a real - estate lien. with the introduction of jumbo pfandbriefe, with an issue volume of over ε 500 million, the establishment of book - building as a method of issue and the assignment of an this tax exemption applies to participating interests held by the seller for at least one year and, in the event of a disinvestment, will increase yield after taxes. data are from aggregate financial flows account. data are from the deutsche bundesbank ’ s securities deposit statistics. they do not include safe custody accounts held by foreign subsidiaries ; therefore, data are distorted downwards. external rating, which is not yet standard practice for private bonds in the euro area – for german pfandbrief issuers this rating is mostly aaa – pfandbriefe have evolved from a german speciality to an international investment vehicle. 5 german share markets have been marked by a tendency to adapt to anglo - american structures. in addition to the increasing importance of sector indices – including pan - european indices – and the establishment of a market segment for high - tech, innovative enterprises, the number of cross - listings of german shares abroad and foreign shares here in germany has increased. in 1997 there were 700 domestic companies and 2, 784 foreign companies listed on german stock exchanges ; by august of this year the figure had ballooned to 1, 080 domestic companies and 9, 964 foreign companies. however, it remains to be seen whether the stock market downturn could lead to greater concentration on the more familiar domestic markets. outlook on the whole, the german financial system can expect to see a further expansion of more marketoriented structures. however, the identity of the german financial system will remain intact. that will be particularly true of historically evolved financial relationships, especially the bank - lending based financing of small and medium - sized enterprises. and that will also be true of the particularly prominent position of pfandbriefe in germany. over 95 % of the market volume of public - sector pfandbriefe, and over 40 % of that of mortgage pfandbriefe, are germanissued. of those, more than 40 % are sold abroad.

street reform and consumer protection act of 2010 ( dodd - frank act ) are specifically targeted at these firms. it would be counterproductive to apply those same expectations to small banks. accordingly, we think it is important to tailor rules whenever possible to clearly differentiate expectations for different portfolios of banks and reduce undue burden on community banks. tailoring regulations may be more challenging in some areas, such as rules that provide transparency and fairness in consumer transactions. those are standards that apply throughout the financial system. i should note that the dodd - frank act transferred rule - writing authority for many of the consumer laws and regulations to the consumer financial protection bureau, or cfpb. the review of those regulations must be undertaken by the cfpb under procedures incorporated in the dodd - frank act rather than egrpra. however, the federal reserve board, the office of the comptroller of the currency, and the federal deposit insurance corporation retained rule - writing authority for the community reinvestment act, and we are interested in your comments regarding ways we can improve the regulation. bis central bankers ’ speeches in addition to changes in the regulatory and supervisory landscape, the banking industry itself has also undergone major changes. advances in technology and shifts in industry composition between depository institutions and nondepository companies have changed the types of financial services and products that are offered, as well as how those services and products are accessed. we will be very interested in your feedback regarding how these types of industry changes have impacted the effectiveness of our regulations. let me conclude by saying that we will consider your comments carefully as the agencies coordinate to discuss and consider the appropriate action that is likely to best serve our financial system and the interests of institutions and consumers. the result will be contained in the agencies ’ report to the congress summarizing the issues raised and the agencies ’ conclusions about the need for regulatory or legislative changes. thank you for joining us today. bis central bankers ’ speeches