That tension between monetary and financial stability is best managed in a coordinated way in a single institution. The use of macroprudential tools can decrease the need for monetary policy to be diverted from managing the business cycle towards managing the credit cycle. This enhances the credibility of the inflation target. That in turn may reduce the need for sharp or persistent moves in interest rates, which themselves might threaten financial stability. Similarly, macroprudential policy can more effectively focus on its primary goal of systemic stability by recognising that, while it affects the economic cycle, it is not suited to managing it. Instead its effects on the economic cycle should – like fiscal policy – be taken into account in setting monetary policy, which is the primary and most effective tool of demand management. Taken together with the synergies from sharing information and analysis, these are strong arguments for operating monetary policy and prudential policy in the same institution. In the short time the Bank has been responsible for both, we have already seen the benefits of operating them in a coordinated way. For example, our forward guidance framework for monetary policy reflects a clear division of responsibilities. Although monetary policy has an important role to play in mitigating financial stability risks, it does so only as a last line of defence. This is important because vulnerabilities can emerge from a long period of unusually low interest rates, as complacency sets in about the future path of policy and asset prices.
The proposed TARGET instant payment settlement (TIPS) service would offer a series of benefits to the payment service providers. First, it would guarantee pan-European reachability for instant payments. Second, it would give payment service providers the possibility to use their credit lines stemming from their collateralised positions in TARGET2. Third, it would eliminate credit risk, thus leading the way to faster and efficient settlement. Last but not least, it would give payment service providers more choice: they could either connect directly to TIPS or channel their payment instructions for instant payments through their respective ACH. The Eurosystem will take a decision by June 2017 on whether to develop the service, based on the results of the public consultation. TIPS could commence operations as soon as 2018. Conclusion Let me conclude. With the migration of the German market to T2S next week, the time has come to reap the actual 2/3  BIS central bankers' speeches  benefits of harmonisation in the post-trade area in Europe. But this does not mean we can slacken in our efforts. There is still a need for further and coordinated action in the harmonisation of post-trade processes. There are also gaps that remain in the financial market integration process when it comes to securities issuance. And there is a need for action in instant payment settlement across Europe. The ECB, together with market stakeholders, has to explore how to best take action in these areas. Thank you for your attention.