These measures proved to be nearly ineffective as they were easily circumvented. Today, in an environment of even more integrated markets, the result would be the same. Introducing such measures to combat an appreciation of the Swiss franc would thus be no solution. Consequently, the SNB would certainly be able to smooth excessive fluctuations in the exchange rate should doubts about the stability of the Euro lead to portfolio shifts into the Swiss franc. However, in the face of extreme capital inflows, we would most likely not be able to entirely insulate the domestic economy from harmful disturbances unless we were willing to jeopardize price stability in the long run. Therefore, Switzerland, like any other country in Europe, has every interest in a successful transition towards EMU and a stability-oriented monetary policy by the new ECB. Let me finish with some thoughts on the consequences of the introduction of the Euro on payments executed in Switzerland. Two cases have to be distinguished: payments related to domestic and payments related to cross-border transactions. As regards domestic transactions, there is no reason to expect that the Euro would to any considerable extent replace the Swiss franc as Switzerland’s main medium of exchange. The costs associated with using the Euro in domestic transactions will be and will remain higher than the ones associated with the Swiss franc. Historically, only in cases of extreme inflation have domestic currencies been replaced by foreign currencies as the main medium of exchange.
31.05.2018  “Banks’ traditional funding sources: opportunities for capital markets” Keynote address at 50th ICMA Annual Conference Javier Alonso Deputy Governor  Good afternoon. I would like to thank ICMA for its kind invitation to take part in this special day: ICMA’s 50th Annual General Meeting and Conference. It is a pleasure to be here and to speak to such a large audience of professionals from such varied backgrounds, representing, among others, issuers, intermediaries, investors, capital market infrastructure providers, regulators and supervisors. Capital markets being at the heart of this event, and banks being at the heart of my day to day work, what I would like to do in this speech is to highlight some developments related to banks’ funding sources that I think may offer new opportunities for capital markets. I would also like to briefly touch upon Brexit, an event that is generating great uncertainty and for which careful preparation is required. All of it, from my perspective as Deputy Governor of the Banco de España and as member of the Supervisory Board of the Single Supervisory Mechanism, which explains why my speech will be focused on developments in the European Union. New opportunities Let me start with what appear to me to be promising developments for reactivation of the markets. Firstly, the renewed political commitment reached at the Euro Summit on 15 December 2017 to press ahead with improvements to euro area governance provides new opportunities to accelerate progress in areas where developments so far have been somewhat sluggish.