And would this not be an argument for an immediate completion of the banking union? The great value of systemic analyses is beyond doubt. But at the same time, I wonder whether a simple trade-off between short-term and long-term goals might not be the result of over-hasty generalisations. Let me set these thoughts in the context of our main topic of European deposit insurance.
These enhancements have further improved the functioning of the money market, especially the interbank market, have also increased the level of flexibility in the Reserve Bank’s liquidity management operations, and have eliminated the lack of synchronisation between the Reserve Bank’s main repo auctions and the MPC interest rate announcements.