in the negotiations. in this context of uncertainty, within the ssm framework, banks are considered to be responsible for taking the necessary steps to obtain all authorisations required for them to carry out their activities in a timely manner to make sure that they can continue to serve their customers after 30 march 2019. they are expected to present credible brexit plans and to use the possible transition period to implement their plans, not to delay planning. it is acknowledged that adapting to a scenario where the uk becomes a third country is challenging. conclusion to sum up, capital markets - like banks - are facing major challenges at a time of farreaching transformation. one of those challenges is the uncertainty that a structural change such as brexit generates. but capital markets also find themselves at a juncture where, first, efforts made in recent years to reactivate specific markets may start showing results and, second, the european political context is such that there appears to be an opportunity to foster the capital markets union and to contribute to deeper and more integrated markets in the european union. thank you for your attention. 6 / 6

it should not be wasted. secondly, focusing on the capital markets union, despite progress having been somewhat slow, there are certainly areas where advances have been made. later today, the programme of this conference offers an opportunity to hear directly from the european commission on the capital markets union. accordingly, my objective now is merely to point out a couple of areas where initiatives have been taken to reactivate specific markets. one of those areas is the securitisation market. another one is the covered bond market. 3 / 6 both securitisations and covered bonds have traditionally been important financing sources for banks and it is my opinion that they will regain importance in banks ’ funding strategies as the ecb ’ s targeted longer - term refinancing operations ( tltro ii ) progressively mature, opening up new opportunities for the markets. in the field of securitisations, despite the stigma that has surrounded this product since the recent financial crisis, the european authorities have considered that appropriately regulated and well - structured securitisations can contribute to diversify funding sources, to promote better risk management and, ultimately, to mobilise more funds for the real economy. for these reasons, two regulations were published on 28 december 2017 in the official journal of the european union amending the regulatory framework applicable to securitisations, in an attempt to harness their benefits, restricting the risks arising from their inappropriate use. one regulation establishes a general framework for all securitisations, and creates a specific framework for those that are to be known as sts ( simple, transparent and standardised ). the other regulation transposes the new basel iii framework, making amendments to the prudential regulation of credit institutions and investment firms, both for general and for simple, transparent and standardised securitisations, which will benefit from a better treatment. these regulatory changes may incentivise changes in banks ’ funding and risk management strategies, and may trigger a renewed interest in securitisations, providing an opportunity to reactivate this market. covered bonds are another instrument where progress is being made. in particular, on 12 march the european commission released a proposal that seeks to harmonise their regulation in europe. the proposal includes a directive that specifies the core elements of what may be termed “ european covered bonds ”. it also amends banking prudential regulations, strengthening the conditions under which banks investing in these products may benefit from lower regulatory capital requirements. once the commission ’ s proposal is approved,