In the meantime we should build our own regulation on the same principles – we are in any case all committed to joint EU regulation – seeking close cooperation and avoiding national peculiarities where they may unnecessarily block cross-border competition. Market-financing and non-bank lending is rather limited in Europe compared to other advanced countries.
Banks have many virtues, but we miss out in terms of diversification and competition if they are too dominant. This is acknowledged by the EU Capital Market Union initiative. A major change from bank-driven financing to market financing is likely to occur slowly and gradually, but it should be encouraged. By its nature, market financing circumvents the vulnerability of bank intermediaries.