Price stability and a functionally viable financial market structure are the preconditions which permanently have to be ensured so that there can be efficiency in financial transactions. In turn, efficient financial markets are the indispensable medium for a predictable and rapid transmission of monetary policy measures. Seen in that light, monetary policy and efficient financial markets are in a symbiotic relationship.
Although the Bundesbank cannot, on regulatory grounds, take on the role of moderator - or even promoter - for the financial centre that some market players would like, it is, in fact, always ready to give active support as an advisor and initiator. The modernisation of German debt management or the customer-friendly ECB minimum reserve arrangements are illustrations of that.