Author: ECB. The following press release was issued by the ECB on January 31, 2017 00:00. Speech by Yves Mersch, Member of the Executive Board of the ECB, at the Joint ECB and European Commission Conference “Into the future: Europe’s digital integrated market”,Frankfurt am Main, 31 January 2017 Introduction For over a decade the European Commission, the Eurosystem and the market have been working towards transforming what has up to now been a very fragmented financial market infrastructure in Europe into a more integrated one. This work is still ongoing and requires more effort. However, we are at a point now when progress has become tangible. In the first part of my speech, I will briefly take stock of where we stand, particularly with regard to the post-trade area. I will then address two areas where I still see gaps that are in the way of our achieving a truly integrated European financial market. The first area is securities issuance, the second instant payment … [Read more...] about Speech Yves Mersch: Digital transformation: Europe’s integrated market of tomorrow
Author: ECB. The following press release was issued by the ECB on January 26, 2017 00:00. Speech by Yves Mersch, Member of the Executive Board of the ECB, at the GFF summit, Luxembourg, 26 January 2017 Introduction There is no doubt that European repo markets today are operating in unprecedented territory. In the past year we have faced the extraordinary situation of collateralised transactions taking place well below the ECB’s deposit rate, and not just for the highest-rated issuers. There are increasing signs that this is indicative of market stress. Though market depth remains relatively stable and the bid offer spreads are not a major liquidity restriction, the decreased average ticket size seems reflective of collateral scarcity in some market segments. If one looks at the distribution of trades taking place by rates towards the end of last year, while German collateral usually traded at around -70 bps, it traded at -4.88% at year-end, reflecting increased demand for … [Read more...] about Speech Yves Mersch: Ructions in the repo market – monetary easing or regulatory squeezing?
Author: ECB. The following press release was issued by the ECB on January 24, 2017 00:00. Speech by Sabine Lautenschläger, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB,at the Übersee-Club Hamburg, Hamburg, 24 January 2017 “The eurosceptic genie is out of bottle and won’t be put back”, said Nigel Farage on 23 June 2016, while the British were still voting on whether they want to remain part of a united Europe. The majority doesn’t want to, as we now know. But the eurosceptic genie is not only haunting the people of Britain. After the Second World War, Europe represented the future for many people; today, a large number are having doubts about Europe’s future. In many countries, parties critical of a united Europe are in the ascendant. Think of the Front National in France, the Freedom Party in the Netherlands, the Five Star Movement in Italy and the Alternative for Germany party. Let me say … [Read more...] about Speech Sabine Lautenschläger: The test of progress – Europe, the euro and the future
Author: ECB. The following press release was issued by the ECB on January 23, 2017 00:00. Speech by Mario Draghi, President of the ECB, on the occasion of the awarding of the Premio Camillo Cavour 2016, Santena, 23 January 2017 It may be true that “history is not the judge of anything that concerns us”, as Montale reminds us. But, in thanking you for this prestigious award, made even more distinguished by those who received this prize before me, if I may recall some features of Cavour’s actions, there are obvious similarities between what happened all that time ago and the circumstances that have continued to repeat themselves throughout Italy’s history, right up to today. Difficulties in adopting a majority government Just a few years after his sudden death, in June 1861, Cavour became a reference point in the debate taking place in the country at that time, either in a spirit of nostalgia for an Italy that could have been, but without him was not, or in a … [Read more...] about Speech Mario Draghi: Cavour Prize 2016: commemoration
Author: ECB. The following press release was issued by the ECB on January 16, 2017 00:00. Speech by Yves Mersch, Member of the Executive Board of the ECB,at the Farewell ceremony for Pentti Hakkarainen, Deputy Governor of Suomen Pankki – Finlands Bank,Helsinki, 16 January 2017 We are living in digital times. The internet and portable online devices have radically transformed the way we use and exchange information, and the way we exchange money. Money has been digitalised in many ways and we can now, for instance, transfer bank deposits electronically and pay with e-money. Today I will focus on one type of digital money – Central Bank Digital Currency, or Digital Base Money (DBM). This is money that is characterised by two features: (1) like banknotes in circulation, DBM is a claim on the central bank; (2) in contrast to banknotes, it is digital. Of course, DBM already exists. Commercial banks and some other types of institution hold digital claims on central banks in the … [Read more...] about Speech Yves Mersch: Digital Base Money: an assessment from the ECB’s perspective