or capital. the fact that the euro area is not considered as a single jurisdiction may result in applying higher capital buffers to euro area g - sibs. while the institutional underpinnings of the banking union do not yet meet the requirements of a genuine single financial market, the creation of the ssm has been a leap forward in the establishment of a coherent regulatory framework. one of the first priorities of the supervisory board has been to promote integration through harmonized implementation of options and national discretions ( onds ), thereby evening the level playing field in the euro area. regarding liquidity requirements, the single supervisory board can grant waivers at national as well as cross - border level on a case - by - case basis. in the current institutional context, where the free flow of liquidity within the same banking group but across border could be impeded, a prudent supervisory approach has led the ecb ’ s supervisory board to still maintain a floor on the liquidity requirements of significant subsidiaries. overall, the banking landscape still resembles too much a collection of banking systems highly exposed to their domestic economies, with limited cross - border private risk - sharing. at the same time, one should recognise that the banking union is both an objective and a process of fundamental structural changes in the euro area ’ s financial architecture. the next steps are 1 / 2 bis central bankers'speeches clearly set out in the ecofin roadmap to complete the banking union. it is now urgent to agree on an ambitious timetable for its implementation. 2 / 2 bis central bankers'speeches

bimal jalan : seminar on international financial architecture remarks by dr bimal jalan, governor of the reserve bank of india, at the symposium of central bank governors, hosted by the bank of england, london, 5 july 2002. * * * today ’ s topic is a very large one and the time available to us is relatively short. to make the maximum use of the time available to me, i will make four broad points rather than deal with any specific issues relating to the international financial architecture. these, we can deal with later in the seminar during the question / answer period. the first point that i want to make is that we need to recognize that the period of the 90s, despite many gains, has seen many more financial crises than the earlier decades. the most distinguishing characteristic of this period is a marked increase in volatility in exchange rates and capital flows. the swings in these areas have not only been large, but also unpredictable and unanticipated. thus, we have seen a large number of currency crises, for example, in mexico, russia, east - asia, brazil and currently argentina, turkey, and emergence of currency pressures in brazil and paraguay again. exchange rates of industrial countries, notably dollar, euro and yen have also shown both short - term volatility and large medium - term movements. capital flows, particularly to emerging markets, have similarly been volatile, with a boom phase being followed by an abrupt and equally large reversal. another feature of the abrupt movement in exchange rate is that while crisis initially occurs in one or two countries, their adverse effects can be felt across the world. in the light of the recent events following the argentina crisis, it is also not clear whether the contagion effect from one country ’ s problems to others has actually been contained, as was assumed only a month ago. as i said, there have been real gains also in terms of benefits from higher capital flows and more flexible exchange rates. however, it is also a fact that the international financial environment has become substantially more uncertain, unpredictable and unstable in the 90s than in the previous half - century. the second broad point that i want to make is that the present international financial architecture, which was designed at bretton woods after world war ii, was for a different era altogether - one of fixed exchange rates, preponderance of “ official ” and stable capital flows, and temporary current account deficits which could be met with temporary access to imf credit. the bretton