This is in the interest of the countries which have already introduced the euro, but even more so in the interest of new countries entering the euro area. Without having achieved sustainable convergence, the loss of the exchange rate and interest rate instrument could cause costly tensions in the economy at the expense of growth and employment. The determined efforts of Greece to achieve such convergence have to be commended. However, it is too early to reach a firm conclusion. Next year, the European Central Bank (ECB) will produce a convergence report to analyse what has been accomplished. Let me repeat and underline that achieving convergence is not a process which ends with adopting the euro. On the contrary, being a member of the euro area and being able to benefit from the potentially great opportunities that offers call for ongoing adaptation to the new environment and the new rules of the game. It is like in sports: reaching the top is difficult, but staying there is even harder. 1  BIS Review 113/1999  Integrating one or more of the EU Member States which have not previously introduced the euro will be a challenge for the euro area. However, an even greater challenge for Europe as a whole lies ahead. I am referring to the enlargement of the European Union. First, I shall deal with that process in general. Then, I should like to say a few words about how the Eurosystem (i.e.
Svein Gjedrem: Risk and growth in the financial industry Speech by Mr Svein Gjedrem, Governor of the Central Bank of Norway, at the Annual meeting of the Norwegian Savings Banks’ Association, Bergen, 27 October 2005. The speech does not contain assessments of the economic situation or the monetary stance. Please note that the text below may differ slightly from the actual presentation. The charts in pdf-format  can be found on the Central Bank of Norway’s website. References can be found on the Central Bank of Norway’s website. *  1. *  *  Introduction  Over the past decades, debt and financial assets have risen sharply worldwide. The financial system serving lenders and borrowers has also expanded. The number of participants in these markets has soared, some new operators have appeared and a broad range of instruments has emerged. Growth in financial markets provides the basis for more efficient use and distribution of capital and for improved risk management. Developments in the financial industry have thus contributed to stronger and more stable economic global growth over the past decades. New instruments have increased banks’ possibilities of managing risk, among other things credit risk associated with lending. In many countries, growth in household borrowing has been high for several years. In Norway, mortgage loans account for an increasing share of banks’ balance sheets. I will now discuss different aspects of this. 2.