In short, depth and liquidity are key ingredients for capital markets that function in an efficient and stable manner, and these necessary elements can only be achieved through active secondary markets. This background should have convinced you that I see great merit in the existence of deep and liquid capital markets alongside a stable and efficient banking sector.
This is not for the markets themselves, but for the important role they play in the allocation of capital and indeed for investments and growth in the economy. The introduction of the euro and the European capital markets The introduction of the euro has already affected and is likely to affect the euro area financial markets in a profound manner in the future.