due to the varying liquidity of the papers issued. currency risks or divergent monetary policies no longer disturb the euro - area - wide diversification. in terms of outstanding amounts, the euro - denominated bond market is still significantly smaller than that denominated in us dollars. but in terms of new issuance, both markets are on a par. one reason for that is the sharp rise in the new issuance of corporate bonds. here again, diversification within the euro area has increased. the issuers'nationality, as a determinant of the yield and performance of bonds, has been superseded by other factors, especially by a sectoral view. accordingly, investors in the equity markets have shifted their perspective from country benchmarks to pan - european sector benchmarks. european equity markets are still small compared with those in the usa. the market capitalisation of domestic shares, as a ratio of gdp, reaches about 90 percent. the matching figures for the usa and japan are 152 percent and 68 percent, respectively. equity markets in the euro area are growing fast. the ratio of new issuance to market capitalisation averages over 4 percent. this is twice as much as has been achieved in the usa or japan. further integration of equity markets in europe is being hampered by the segmentation of both stock exchanges and clearing and settlement systems. a consolidation process has started, and should be fostered by legal harmonization in the field of financial services. the degree of integration in the banking sector is mixed. on the one hand, wholesale markets and investment banking are largely integrated. on the other hand, commercial credits and retail banking still operate in national, segmented markets. however, a few european banks created by cross - border mergers are slowly starting to offer retail services at a standardised level for customers in more than one country. the financial system in the euro area is still highly bank - dominated. at the end of last year, credit financing totaled about 108 percent of gdp. this is about as much as in japan, and twice as much as in the usa. the picture is similar with deposits. in the euro area, they account for 80 percent of gdp, and for 110 percent in japan, while the us figure is only about 40 percent. however, capital markets are increasing in importance in the euro area. disintermediation is gaining ground. financial markets have boomed in recent years and investment banks ( as well as non - bank financial firms like institutional investors, pension and

counterparties have become systemically important financial players. the commonly used term " too big to fail " is synonymous with this importance and, at the same time, serves as a call to all of us to take precautions to avoid the failure of the critical functions performed by these fmis. second, we should be aware that central counterparties are embedded in a very complex and highly interdependent ecosystem of clearing members, clients, markets, financial and technological service providers, to name only a few. and third, we have observed that there has been a constant progression when it comes to the clearing landscape. clearing services and risk models keep evolving, learning lessons from the past as well as anticipating potential future periods of volatility in the financial markets as a result of geopolitical tensions and climate - related effects. 2 / 5 bis - central bankers'speeches and these three aspects are what makes further development and enhancement of regulation so crucial. which is why i very much welcome the strides taken by the fsb in their efforts to further strengthen trust in the clearing ecosystem. first in 2022, the fsb together with cpmi - iosco delved into the complexities of ccp financial resources and conducted a quantitative and qualitative exercise, laying the groundwork for the fsb report that's now been produced. the heart of the present fsb report is the expansion of our existing toolbox to incorporate new features for resolution purposes. the fsb is offering jurisdictions an additional footing to set up instruments to deal with crisis situations severe enough to trigger resolution. existing, but also new funding instruments are presented and analysed in this report, such as statutory or contractual variation margin gains haircutting for resolution and equity in a first - loss position. but we need to remember that access to tools is not an end in itself. they must be fit for purpose. so, whenever we're talking about tools for resolution planning, there's a couple of questions we have to bear in mind : can these tools contribute to an effective resolution strategy? and do the advantages of using them outweigh the disadvantages? in this regard, i applaud the fsb's foresight in choosing to design the toolbox in a flexible way. this allows the jurisdictions discretionary scope to address the individual specifics of the supervised ccps, the local situation of the financial market and, finally, to select the best and appropriate tools for overcoming a crisis. 4 global collaborations :