daily basis that the advancing digitalisation of the financial system, too, requires intensive international exchange. in our role as central bankers, we closely observe, analyse and share our views about the 1 / 2 bis central bankers'speeches opportunities and risks created by new providers of digital financial services. because one thing is clear – digitalisation does not recognise national borders. in many places, the new developments will require us to come up with, at the very least, european responses. and i am not only talking about the challenges of cross - border supervision and regulation of the activities of new fin - techs or so called big - techs. i am convinced that we need to develop paneuropean payment solutions. we have to think in european dimensions in order to withstand global competition. europe ’ s citizens need an alternative to existing platforms such as facebook, alibaba or google, if only in order to protect their personal information. i therefore welcome the european commission ’ s commitment to press ahead with its efforts to develop european solutions in the coming legislative period. for we in the eu have a shared objective : to make available to all citizens a safe, rapid and reliable financial infrastructure. 3 conclusion ladies and gentlemen, i am well aware that european dialogue is not always harmonious. there is often heated debate and controversy about finding the right path. and yet europe shares many interests, objectives and values. it is my wish for the future that we will succeed in giving these shared european traits greater prominence. in the political arena and in our society at large. this evening, the emphasis is on our mutual interest in contemporary art – also often a topic of heated debate! without the dialogue between the art curators of euro area central banks and the interest in the interplay between our art collections, this successful project could never have got off the ground. i would therefore like to take this opportunity to thank the curators and all the staff members of the national bank of belgium and the deutsche bundesbank involved in this project. you have done an amazing job! the success of this exhibition shows that central banks can contribute to public dialogue in various ways. the bundesbank will definitely continue to display its art collection in exhibitions and guided tours. we are officially closing this exhibition today. however, we are not ending the dialogue! we will be continuing it. and i cordially invite you to take part in it, now and in future. thank you for your attention. 2 / 2 bis central bankers

andreas dombret : total impact – how regulation and crisis management will change the world ’ s financial landscape speech by dr andreas dombret, member of the executive board of the deutsche bundesbank, at the frankfurt finance summit, frankfurt, 19 march 2013. * 1. * * introduction ladies and gentlemen i am delighted to conclude this year ’ s frankfurt finance summit. for the third year in a row, this event has provided an excellent platform for an exchange of views between high - level experts from politics, academia, as well as the financial and the official sectors to discuss financial market issues of major current importance. today ’ s conference has been asking about the total impact that regulation and crisis management will have on the financial landscape. the keynote speakers and panellists have given wide - ranging and, in some cases, diverging answers to that question. i am pleased to conclude this year ’ s summit by offering my views on some particular aspects of the issues discussed today. 2. future of the european monetary union let me start with the topic of the first panel this morning : the future of european monetary union. the crisis has highlighted shortcomings in the union ’ s institutional framework. let me remind you of three serious flaws. first, the deficit rules of the stability and growth pact were not only circumvented by some member states, but deliberately bent. second, member states ’ borrowing was not effectively curbed because financial markets failed to exert a disciplining effect on public budgets. third, contagion effects transmitted via member states ’ financial systems were largely underestimated. the introduction of the single currency led to a greater integration of european financial markets. the highly integrated market increased the probability of contagion effects occurring via member states ’ financial systems. hence, it amplified the existing close link between risks stemming from a country ’ s public finances and the state of its banking system. these flaws were a major factor in the emergence of the sovereign debt crisis and that fact makes a good case for strengthening the institutional framework of the monetary union. i welcome the measures that have been initiated. the reform of the stability and growth pact and the agreement on the fiscal compact are major steps towards sounder budgetary policies. with the agreement on a european banking union, we have made further progress in one important specific area. a banking union can help to strengthen financial stability by loosening the nexus between banks and sovereigns. a european banking supervisor would benefit from the ability to make cross