BIS central bankers’ speeches  3  aim in mind, the ECB will become the single supervisor of around 130 of the most significant euro area banks in November 2014.10 Until then, it will conduct a comprehensive assessment of their balance sheets to create greater transparency in respect of the risks and ensure, should the assessment reveal excessive risks or insufficient capital, that they take prompt corrective action when warranted.
Rules recently adopted or still under discussion in the European Union also ensure that shareholders and creditors will have a strong interest in banks avoiding excessive risk-taking, for a simple reason: they will now be first in line to absorb possible losses, rather than taxpayers.11 Let me be clear on this: the time when taxpayers were first in line to bail out banks is behind us.