Although the ECB will be responsible for the direct supervision of only large, systemically important credit institutions, this does not mean that other banks will not be covered by the ECB’s supervisory framework. National supervisory authorities will have to comply with the regulations, guidelines and instructions of the ECB.
Additionally, the decision to taper will ultimately hinge on an improved U.S. economic outlook, which should benefit the rest of the world, including emerging markets. Finally, tapering may facilitate the adjustment required in certain economies afflicted by financial disequilibria which, at least in part, may have resulted from the abundance of foreign funds.