We welcome the early actions laid out in the Commission’s action plan and believe sustained effort and an ambitious agenda will be required beyond these initial steps, together with a long-term vision, in order to make full CMU a reality. Continuing to look ahead, I would now like to turn to the second initiative I mentioned at the start.
It has also been argued that the emphasis on micro-prudential regulation may have contributed to the buildup of some macro risks. Collectively, the systemic risk is becoming more and more prominent with the increasing complexities and the associated risk factors in the banking activities.