system rather than on individual banks. thus, it aims at reducing the probability that an adverse shock could endanger the stability of the financial system with potentially harmful effects on the real economy. safeguarding financial stability is a national seite 3 von 10 deutsche bundesbank, directorate general communications wilhelm - epstein - strasse 14, 60431 frankfurt am main, germany, tel : + 49 ( 0 ) 69 9566 3511 or 3512, fax : + 49 ( 0 ) 69 9566 3077 presse @ bundesbank. de, www. bundesbank. de reproduction permitted only if source is stated. responsibility. given the close integration of european financial markets, however, macroprudential policy is coordinated closely at the european level. currently, first experiences with macroprudential measures are being gathered. take, for example, measures recently announced in france on large exposure limits and on counter - cyclical capital buffers. 1 but even the best set of rules cannot prevent crises from happening. therefore, a framework for dealing with crises situations was created with the european stability mechanism ( esm ). mechanisms to deal with insolvent banks were established. neither existed prior to the crisis. during the crisis, decisions on how to allocate losses had to be made ad hoc. at the national and the european level, new institutions handling the restructuring and resolution of insolvent banks were created – the single resolution board and national agencies. these reforms contribute to the reduction of incentives for risk - taking, they enhance the resilience of the financial system, and they strengthen the european institutional framework. yet, some reforms have not yet been completed or fully implemented. many of the new rules and institutions are still “ untested ”. therefore, we must learn from past experience and address any shortcomings. learning from past experience an independent monetary policy depends on stable financial markets which are resilient with regard to financial crises. a structured evaluation of reforms aiming at the stability of financial markets and at preventing that sensible reforms are rolled back is thus important. 2 the risk of a roll back is imminent whenever achievements of the reform agenda are insufficiently visible and whenever unintended side effects occur. like in many other areas, the costs for the affected institutions are more visible in the short - term than the benefits of financial market reforms for society. seite 4 von 10 deutsche bundesbank, directorate general communications wilhelm - epstein - strasse 14, 60

money laundering and strengthened cooperation between national instituseite 5 von 10 deutsche bundesbank, directorate general communications wilhelm - epstein - strasse 14, 60431 frankfurt am main, germany, tel : + 49 ( 0 ) 69 9566 3511 or 3512, fax : + 49 ( 0 ) 69 9566 3077 presse @ bundesbank. de, www. bundesbank. de reproduction permitted only if source is stated. tions. sharing responsibilities between member states and the european level ( ssm / ecb ) should thus be improved. evaluating the effects of reforms is not only about an assessment of existing regulations and recently agreed measures. rather, it is about identifying and potentially closing potential gaps and weaknesses. in doing so, evaluations need to take into account that the market environment is changing. global risks, changing patterns of foreign trade, and new technologies affect price and financial stability as well as payments systems. all this needs to be taken into account when discussing potential regulatory consequences. based on a french - german initiative, for example, the g20 is currently looking at the risks and opportunities posed by crypto - assets and crypto - tokens. developing european financial markets while many post - crisis reforms have focused on banks, developing european financial markets is an important project going ahead. investments and innovations are needed in many areas of the economy – in response to demographic change and an aging population, digitalization, and climate change. these investments into the future, in turn, require strong and stable financial markets. in europe, however, legacies from the crisis still burden the banking sector. in some countries, non - performing loans remain an issue ; in other countries, excess capacities and intense competition are putting pressure on margins. this may delay structural change in the real economy which requires a reallocation of resources from shrinking to growing sectors. for the financial sector itself, digitalization implies a significant structural change. the financial system, at the same time, contributes to risk sharing in an economy. the public debate on the issue tends to focus on mechanisms of fiscal risk sharing, which are politically sensitive. this debate overlooks that there are unexploited potentials for improvseite 6 von 10 deutsche bundesbank, directorate general communications wilhelm - epstein - strasse 14, 60431 frankfurt am main, germany, tel : + 49 ( 0 ) 69 9566 3511 or 3512, fax : + 49 (