2  BIS Review 42/2004  Since our entry into the Eurosystem, there has been a significant change of emphasis in our work, towards a greater focus on Eurosystem responsibilities.
In competitive financial markets, the greater the leverage, the higher the rate of return, before adjustment for risk. If private financial institutions have to absorb all financial risk, then the degree to which they can leverage will be restrained, the financial sector smaller, and its contribution to the economy more limited.