5/7  BIS central bankers' speeches  Against this backdrop, the ESM should be turned into a body that is governed by EU law and is accountable to the European Parliament. This would ensure that the ESM is better placed to act in the sole interest of the euro area.
However, banks will not only have to face growing interbank competition: as the euro will probably foster the growth of a much larger and more liquid securities market in Europe, securities markets may be expected to pose a significant competitive challenge to banks offering traditional forms of intermediated credit.