of law and property rights, fair and competent accounting and auditing, and arrangements for predictable and fair resolution of the problem of failing institutions. there must also exist an adequate institutional framework, e. g. for an efficient division of roles and responsibilities between different public and private institutions. a crucial part of the financial institutional framework, whose importance is sometimes neglected, is the payment system and its infrastructure. a country ’ s financial system is also susceptible to the vagaries of economic and political developments. for instance, while a fixed - exchange rate regime in certain circumstances tends to support financial stability in a country ( or group of countries – to refer to the european context ) there might be situations in which such a system could have the opposite effect. to underpin financial stability, economic developments should be sustainable, transparent and predictable. this also applies to political decisions, which affect the financial system directly or indirectly. completing the circle and reverting to my first observations on the increased global linkages, most countries ’ financial systems are influenced by developments outside the domestic economy. linkages come through different channels : macro economic events having international repercussions, for instance through international markets, or “ micro events ” such as via banks ’ cross - border affiliates. the fsap – an attempt to tie together the loose ends given the various pieces needed to shape and maintain a stable and efficient financial system we need a bird ’ s - eye view to see that they are all in place and that they do not counteract one another. the approach should also identify weak spots from which the financial system potentially might be destabilised. this need for a bird ’ s - eye view resulted in the creation of the fsap. the fsap is intended to cover the pieces i just mentioned – standards, preconditions and institutional setting and the interplay of these factors in the context of the domestic economy. the fsap is also expected to include implications of international interlinkages but i admit that this part has become gradually more difficult as a result of the increased scale, scope and complexity of financial institutions and markets conducting cross - border activities. to be blunt : how do you assess the effects on the swedish financial system from our internationally - active banks which practice centralised funding activities and even to some extent credit registration? how do you look at banks organised along product lines, while regulation and supervision mostly is national? this is the rationale for moving to regional fsaps in order to

sharon donnery : capitalising on opportunities in europe ’ s financial markets remarks by ms sharon donnery, deputy governor of the central bank of ireland, at the ft future of europe event, virtual, 21 september 2021. * * * good morning everyone, it is a pleasure to participate in this event and particularly this panel, to discuss such an interesting topic. when considering the title for our discussion, “ capitalising on opportunities in europe ’ s financial markets, ” my thoughts on the opportunities available are that there are steps that can be taken in the evolution of the european financial system to ensure we have a resilient financial system that can serve households and businesses both in good times and in bad. central banks and regulators play a key role here, as a key foundation of that is an effective regulatory and supervisory framework, that supports confidence in the functioning of the financial system and markets. the withdrawal of the uk from the eu the evolution of the financial sector in the european union ( eu ) has been accelerated by the decision of the uk to withdraw from the eu. this has resulted in changes to the structure, composition and operations of financial markets in the eu. many firms, which previously did business in the eu from the uk, have sought regulatory authorisation in other jurisdictions including amsterdam, dublin, frankfurt and paris. 1 preparing for the withdrawal of the uk from the eu has been a key focus of the central bank of ireland in recent years and we have had a clear approach regarding firms relocating to ireland from the outset : if firms wish to be authorised here, they have to be clearly and demonstrably running their business from here. this has meant we have seen a significant evolution in the number and type of firms conducting business in ireland in the last few years, with over 100 applying for new authorisations or for permission to expand their businesses. the financial services landscape has changed materially to a decade ago and we constantly work to ensure that our supervisory practices evolve to meet this changed landscape. capital markets union the withdrawal of the uk also meant the withdrawal of the largest financial centre in the eu. there was, and is, a risk that fragmentation in the provision of financial services in the eu will increase. however, there is an opportunity that can be taken to mitigate this risk and indeed reduce fragmentation, completing capital markets union ( cmu ). of course this is not the only benefit of completing capital markets union ( cmu ), which also include broader de - risking across european financial markets