Issues related to banking supervision Turning to issues related to banking supervision also raised in the draft resolution on the ECB's Annual Report, I should like to recall, at the outset, that the framework for financial stability in the EU relies on two building blocks: national competence and co-operation.
It is our firm belief that the impressive changes in financial markets prompted by the introduction of the euro call for a substantial enhancement of the mechanisms for co-operation between national authorities and with the Eurosystem. This is so because EMU is changing the nature and scope of systemic risk.