Bank Supervision and Regulation in the United States Why do we supervise and regulate banks? The reasons are very straightforward. First and foremost, problems in only a small number of banks can, under the right circumstances, become problems in the entire banking and financial systems, with potentially major risks to the real economy.
On the one hand, the evidence suggests that the acute deflation risks have disappeared and that inflation is set to pick up over the coming years. And contrary to a widespread perception, euro area economic conditions have also been steadily improving. Euro area GDP growth has been solid in every quarter since the beginning of 2015, averaging 1.9 percent in annualised terms.