Economic assessment The disruption to global financial markets, which was triggered in August 2007, has evolved into the most severe systemic crisis in almost a century. The extent of the turmoil has been far worse than was envisaged and it is still very unclear when the crisis will end and what the ultimate effects will be.
Last but not least, banks in the euro area are now stronger than 10 years ago. This positive experience shows that the challenges ahead can be successfully addressed in a pragmatic way. Banking supervision needs to be constructive, not destructive. This is always true, but in the euro area today it needs to be constantly remembered.