The complexity is also characterised by a phenomenon known as “Knightian uncertainty”, named after the famous Chicago economist Frank Knight. Knight argued: “There are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know.
They have to prepare themselves for other forms of market access – and quickly. All this is happening at a time when the banking sectors of some countries still need to consolidate. Let’s turn to Europe’s banking union. It now rests on two pillars: alongside banking supervision, there is a mechanism that allows us to resolve banks without disrupting the financial system.