BIS central bankers’ speeches  7  address asymmetric shocks. Furthering financial integration, namely with an ambitiously implemented Capital Markets Union, would facilitate capital flows across sectors and countries, ultimately improving risk-sharing across countries. But reaping the benefits from integration without raising financial stability concerns requires adjustments to the macroprudential toolkit. The current bank-centred framework has its limits.
Improvements require a more harmonised legal framework involving the review of the CRR/CRDIV framework and an extension of the toolkit to the non-banking sector and to market-based instruments. This will be a gradual process, but we need to address it already now while designing the Capital Markets Union, in order to ensure a successful and sustainable financial integration in Europe.