Summing up, currency union has contributed to the increasing competition in the domestic banking sectors but leaves scope for future activities to achieve a truly pan-European consolidation of financial intermediaries. IV. Implications for monetary policy  Two trends can be observed within the European financial system, despite all remaining national differences concerning legislation, taxation and the financial structure of enterprises.
So we need to look at ways to avoid having these risks add to the costs of deposit insurance and to the 1  In Canada, under the Payment Clearing and Settlement Act, the Bank of Canada has been given formal oversight responsibility for ensuring that appropriate arrangements are in place to manage and control systemic risk in major clearing and settlement systems.