restore proper incentives with respect to their risk - taking. let me also highlight that a key element of the sifi policy framework is to develop strengthened resolution frameworks to ensure that all financial institutions can be resolved safely and quickly, without destabilising the financial system and exposing the taxpayer to the risk of loss. the fsb is focusing on the identification of the key elements of effective resolution regimes, which will identify the essential features that national resolution regimes for financial institutions, including non - bank financial institutions, should have. let me mention that the eu is actively participating in the ongoing work and is also taking these global initiatives into account in the design of the european framework. third, another important area where work needs to progress relates to the so - called “ shadow banking system ”. the financial crisis evidenced that systemically important pockets developed in the financial system without any regulatory oversight. a better understanding of the interconnections between regulated and unregulated entities is needed. moreover, it is important to bear in mind that the introduction of more stringent capital requirements for credit institutions may provide further incentives to shift activities outside the regulatory perimeter. for this reason, the regulatory reform should not only focus on regulated banks. it should instead be based on a comprehensive system that extends in a proportional way to all actors, intermediaries, markets and activities that embed potential systemic risk. 2 in this area the identification of data gaps and putting in place an effective monitoring framework as well as reinforce the accounting rules on consolidation internationally are key. 2. increasing transparency and mitigating the pro - cyclicality in financial markets i would now like to touch upon the measures taken with regard to the regulation of financial markets. here, reform must ensure greater transparency for the various market segments and products, sufficient competition in all markets, and attenuate as much as possible the pro - cyclicality that derives from information asymmetries, structural features such as ratings, market phenomena such as herding and short selling practices. in this speech i will focus in particular on improvements in the regulation of otc markets. private financial markets cannot function properly unless there is enough information and reporting both to market participants and to relevant regulators and supervisors. the financial crisis evidenced the increasing opaqueness of the financial sector and the resulting counterparty risk externality. regulatory initiatives that are underway to remedy these issues are therefore of utmost importance. let me begin by highlighting the importance of establishing an appropriate regulatory framework for otc derivatives. otc derivatives

##ence of the economic and monetary union ( emu ) implies also reinforcing our common institutional set - up so as to prevent and manage shocks. i thus welcome the european parliament ’ s role in such discussions and the renewed efforts by euro area leaders and ministers to tackle the issue, as reflected in, for instance, the recent eurogroup meeting. it is in this spirit that i look forward to the upcoming euro summit meeting on emu governance. thank you for your attention. i am at your disposal for questions. 1 excluding ireland, due to the country ’ s exceptionally high gdp growth in 2015 linked to specific activities of multinational enterprises. 2 using composite cost of borrowing indicators. 3 target stands for trans - european automated real - time gross settlement express transfer system. target2 is the second generation of target. 4 / 4 bis central bankers'speeches