BIS Review 73/1999  2  Similarly, low inflation and low interest rates have had a favourable impact on business behaviour. An important reason for this is that with low interest rates, there is little or no scope for negative gearing. Most of the reckless schemes of the entrepreneurs of the 1980s were simply negative gearing writ large.
Who will pay for the new European supervisory authority? How can the costs be distributed fairly across institutions, and what is the right allocation key? In my opinion, all banks should be involved, albeit in proportion to their size and risk weight.