They comprise the need to monitor private debt sustainability, preparing for a scenario of increased distress in the corporate sector, enhancing financial institution’s balance sheet transparency, and coordinating policies across countries Good data that are available across countries are also crucial for analysing the effects of a withdrawal of policy measures: If fiscal support is withdrawn too soon, this could exacerbate the effects of the economic crisis and put financial stability at risk.
I think this is a sign of strong faith in the sustainable business models of these locally based institutions. But even these business models have challenges to face. This ties in with the name of this year’s Savings Bank Conference: “Modern banking.