We expect the drag on domestic economic activity from these factors to ease over the course of this year, as the value of the dollar and crude oil prices stabilize, and I anticipate moderate economic growth, on balance, for this year as a whole. As always, however, the economic outlook is uncertain.
They enable bank resolution, limit contagion in the case of bank defaults thereby contributing to safeguarding overall financial stability. This, in turn, would reduce the need for public risk-sharing in the first place.