I trust that these coordination efforts will include the development of a plan for coordinated testing of backup sites by firms across the financial sector similar to the testing that took place in preparation for Y2K. Initiatives by the Federal Reserve and Bank Supervisors to facilitate financial system resiliency At the Federal Reserve, we are into evaluating and strengthening our business-resumption plans.
The positive side of this is that there is little evidence that the euro area has seen a rise in “bad” market power – market power which results in productive and allocative inefficiencies. However, on the negative side, the euro area has also not seen the emergence of superstar firms – highly productive large firms with rising market shares.