Prospects for the banking system In this context, it is imperative that the banking sector is well-positioned to foster sustainable growth in the coming years as the exceptional levels of monetary policy support will be adjusted in line with the progress towards our policy objective. A well-functioning, profitable and resilient financial sector is vital for the long-term economic prospects of the euro area.
The economy will go into a recession again at some point, and then there will also be a correction in the stock markets. Nobody knows how big that correction will be. But no one is expecting a major crisis – unless there is a huge geopolitical crisis. That would be a different situation.