That is, it has caused supply-side constraints, such as parts and labor shortages as well as bottlenecks in logistics. 3  Due to supply-side constraints on parts, Japan's production and exports have been under downward pressure, mainly for the automobile-related sector.
However, to be complete, banking union has to include two further pillars: (i) a Single Resolution Mechanism; (ii) a Single Deposit Guarantee System, thereby aligning supervisory responsibilities with those of a safety net. A single supervisory mechanism that is not accompanied by European deposit guarantee and resolution mechanisms represents a banking union still under construction.