The solution involves settlement of a large portion of the claims that the Central Bank received as compensation for deposits transferred to it, in accordance with the decision of the Financial Supervisory Authority (FME) on the disposal of assets and liabilities of Sparisjóðabanki Íslands hf. (SPB) in March 2009. The settlement of the compensation has not been finalised, however, and the matter is still being considered by the Financial Supervisory Authority. The Central Bank has concluded agreements with eight savings banks concerning the settlement of claims, and the agreements will be finalised soon after the Financial Supervisory Authority and other creditors have confirmed them. I realise that it is painful for guarantee capital owners and creditors to lose these assets, which were deemed quite valuable before the crash and were perhaps purchased recently with borrowed money. Nonetheless, it is necessary to face facts and try to salvage the value that remains. I have always viewed the savings banks as an important part of a healthy financial system, as they have a certain advantage in assessing local opportunities and risks and are generally trusted in their home communities. But this makes it important that the savings banks limit their activities to the areas where they can compete, and not extend into risky investment banking operations. With the financial restructuring currently underway, it will be possible to strengthen the foundations of important savings banks.
First, a multilateral interbank exchange fee is being developed, which should solve the problem of “double charging” and, second, a “basic” service will be defined which should provide a level of guaranteed service and ensure transparent and attractive price conditions. In a progress report published this month, the Eurosystem has made several recommendations to achieve further improvements in the price level and quality of the cross-border payment services for both corporate and private customers. Without a doubt, we shall continue to monitor this process very closely in order to ensure further cost and efficiency benefits for euro area corporations and citizens. Conclusions I have outlined the factors that are the main determinants underlying the changing structure of the financial system in general and the banking sector in particular. Overall, the various elements of the banking sector show that it is likely that a number of banking activities will be affected by this change. The foreseen structural changes require the need for adjustment to be taken seriously by all participants in the financial system. This adjustment appears to have intensified in recent years, as there has been an increase in merger activity, an establishment of alliances and an introduction of new  5  BIS Review 83/2000  products and services, often based on modern information technology. The process of structural change embodies an element of risk, but if these risks are identified early and analysed carefully, then they can be duly taken into account.