Alongside these opportunities of capital markets union, we need to recognise that such fundamental changes in the structure of the financial system would require revisiting regulatory approaches.6 In this regard, I want to highlight three aspects: First, a Single Rulebook and an integrated supervisor for capital markets are key ingredients to support the integration of capital markets and would ultimately also allow banks to thrive from more stable capital markets.
The establishment of ESMA has been a major step towards fostering convergence of national supervisory practices. But the supervision of securities markets remains at the national level, which fragments the application of EU legislation. ESMA could play a much larger role in ensuring consistent transposition and effective enforcement of rules agreed at EU level.