However, while I see some advantages for more disintermediation in the euro area, I do not think we should go too far in the opposite direction and replicate the US model. A predominance of capital markets in financing the economy opens opportunities but brings also more volatility.
A balanced funding mix between banks and capital markets is best for financial stability – and close bank-firm relationships in several countries are simply part of the fabric of the euro area economy. But this implies that we need to have profitable, viable and stable banks in the euro area.