##rrencies of the euro. hence, the introduction of the single currency has resulted in more efficient and well - functioning markets, which benefit not only euro area residents, but also market participants outside the euro area. furthermore, this market still has great potential since the use of securities finance by the corporate sector, relative to bank finance, is still only about half that of its counterpart in the united states. the single currency also appears to be a catalyst for restructuring the european corporate sector, and for the emergence of new companies. the ongoing integration process of the national stock exchanges has also been supportive in this respect. primary issues of european equities have reached record highs, with whole new markets, such as the neuer markt in frankfurt, becoming prominent internationally. these developments can only favour those companies which may have found it difficult in the past to finance themselves, but which will now be able to raise equity more easily. in addition, a number of europe - wide equity indices have been established, thereby contributing to extending the trading possibilities and the position - taking opportunities for investors. alliances between stock exchanges should also foster the integration of stock market infrastructures. these changes are bound to intensify competition and make european markets more resilient and fit for the global economy. conclusion to conclude, the introduction of the euro has acted as a catalyst for promoting integration of financial markets in europe, and provides an opportunity to create a europe - wide securities market. the result will be more efficiently functioning markets which, in turn, will mean a reduced cost of capital and improved investment opportunities for businesses and individuals. this process will also enhance the depth and liquidity of financial markets, which in turn will promote stability. the european central bank contributes to this stability by pursuing a credible and transparent monetary policy. in fact, a consistent monetary policy that is committed to price stability is the best contribution that the ecb can make to the smooth functioning and integration of european financial markets. such a policy will be beneficial, as it will minimise the adverse effects of inflation and high inflation uncertainty, thereby creating conditions for steady and sound economic growth in the medium term. a stability - oriented monetary policy thus contributes to the smooth functioning of financial markets and to economic prosperity as a whole.

other systemically important institutions with buffers of up to 2 %. systemic risk buffers have been activated in five countries, with a range of between 0. 5 % and 3 %, and the countercyclical capital buffers have been announced in seven countries ( belgium, france, germany, ireland, lithuania, luxembourg and slovakia ) with rates between 0. 25 % and 2 %. for more information, see “ macroprudential measures in countries subject to ecb banking supervision and notified to the ecb ” on the ecb website. [ 10 ] for a discussion of recent ccyb decisions, see babic, d. and fahr, s. ( 2019 ) “ shelter from the storm : recent countercyclical capital buffer ( ccyb ) decisions ”, macroprudential bulletin no. 7, ecb. [ 11 ] see, for example, “ refining the stress capital buffer ”, speech by the vice - chair for supervision, randal k. quarles, at the program on international financial systems conference, frankfurt, germany, 5 september 2019. european central bank directorate general communications sonnemannstrasse 20, 60314 frankfurt am main, germany tel. : + 49 69 1344 7455, e - mail : media @ ecb. europa. eu website : www. ecb. europa. eu reproduction is permitted provided that the source is acknowledged. media contacts copyright 2019, european central bank