Yves Mersch: Financial stability – quo vadis? Speech by Mr Yves Mersch, Governor of the Central Bank of Luxembourg, at the Seminar on Financial Stability, Central Bank of the Republic of Turkey, Ankara, 21 October 2008.
By contrast, for financial institutions that aspire to enhance their presence in niche markets, limiting functions and concentrating resources could be an important option. Those financial institutions’ behavior is expected to not only improve management efficiency of individual financial institutions through increased competitiveness but also lead to increased profitability of the financial sector as a whole through efficient resource reallocation.