2  Bank for international Settlements, Debt, global liquidity and the challenges of exit, 8 July 2013. 2  BIS central bankers’ speeches  A withdrawal of global liquidity would equate to a withdrawal in capital inflows to emerging markets, which would remove a source of financing for emerging markets and potentially lead to a sharp rise in term premia.
While such a harmonisation may begin with changes in relevant national legislation and focus on those areas which may produce broader effects, the ultimate goal must be one of achieving a single rulebook. Above all, a single capital market requires a common safe asset.