It is important that the financial system adapts to the changing monetary policy and macroeconomic environment and manages the risks that arise from these shifts. As the recent turmoil in the financial market has shown, strong banking supervision is a central pillar of financial stability. Banking supervisors will continue to carefully monitor developments in the banking sector.
Progressing towards a single European capital market can help make the EU (European Union)’s financial system more stable, resilient and competitive. That is what Europe needs: a stable, resilient and competitive financial system. Footnotes: 1. ECB (European Central Bank) Banking Supervision: Supervisory banking statistics, fourth quarter 2022, 12 April 2023. 2.