It is clear to us that a strong and independent supranational supervisor will contribute significantly to the smooth functioning of the monetary union and to restoring confidence in the banking sector. Regaining such confidence, in turn, is also key to reversing financial fragmentation and restarting fully functioning cross-border markets.
Review of Economic Studies 79, pp 1371-1406. BIS central bankers’ speeches  5  Perhaps a factor at least as important, though, is the positive experience Germans had with the D-Mark and its stability-oriented central bank. The young Bundesbank was successful in gaining credibility as a guardian of the currency, even in difficult times.