We have already seen some evidence of more diversification in the sources of finance of private firms in the euro area, in particular the increasing use of securities financing.1 The euro will continue to act as a catalyst in further integration of national financial structures of the euro area into a truly euro area-wide financial structure. The euro’s function as catalyst is particularly important for the banking sector. It will reinforce already prevailing trends in the EU banking systems, such as pressure for the reduction of excess capacity, increased internationalisation and conglomeration, and further mergers and acquisitions.2 I intend to approach the relationship between the euro and the banking sector from two different angles. First, I shall discuss the factors underlying the changing structure of the financial system, in general, and the banking sector, in particular. Second, I shall touch upon the impact of the euro on the euro area banking sector in the field of both wholesale and retail business. Factors underlying the changing structure of the financial system and the banking sector Widespread deregulation and liberalisation, accompanied by technological development, have changed the environment in which banks are operating. In addition, globalisation and the increased and transformed wealth of individuals have affected the operations of financial institutions, in general, and of banks, in particular.
I’m looking forward to his insights and I know they will be the catalyst for some rich discussion. Please join me in welcoming John Dugan. 1 The information in this speech on the history of the New York Fed’s headquarters building comes from About  the Building on the New York Fed’s website. 2 Citigroup, Third Quarter 2019 Results and Key Metrics, October 15, 2019. 2/2  BIS central bankers' speeches