‒  The Banking Union and in particular its Balance Sheet Assessment, provided that it is seen as credible, will increase transparency and thus reduce the uncertainty attached to the market value of banks. ‒  Pricing will more correctly reflect the true value of the banks. The discount unfairly attached to good banks will be reduced, or even eliminated.
The Reserve Bank is therefore particularly pleased with the determined effort made by the Minister of Finance to reduce the deficit in the Budget from 5.4 per cent of gross domestic product in 1996/97 to 4.0 per cent in 1997/98. In absolute terms, the net borrowing requirement (i.e.