In general, the euro area still has a much more “bank-based” system compared with the rather “marketbased” system in the US. However, the euro area financial landscape is changing, as a result of a number of structural developments, including the introduction of the euro, increasing financial integration, securitisation and other forms of financial innovation, the impact of longrun demographic trends, etc. 4.
Financial innovation  I have mentioned securitisation as one of the factors changing the euro area financial landscape. This is an important issue since securitisation is an example of a relatively mature form of financial innovation, a factor that plays an important role in determining the degree of efficiency of a financial system.