Our comprehensive balance sheet valuation and our stress test will bring about greater transparency and a healthier banking system in the euro area. The Single Resolution Mechanism (SRM) will play its part too. It will lessen the risk that taxpayers in future will have to foot the bill to rescue banks in trouble.
In addition, it will continue to tackle the fragmentation by sustainably reducing the interdependence of banks and governments. At the same time, with the Single Supervisory Mechanism under construction, it’s becoming clear that the banking union is not a system closed in on itself. Rather, Europe’s banking supervision is also dependent on standards in other areas that are as uniform and transparent as possible.