To some extent, we should use this to smooth the economic cycle and absorb shocks more evenly – to increase our resilience, but, of course, without repeating the past, in which depositors and tax payers ultimately took the hit.
Alongside the European supervision and resolution authorities I already mentioned, the completion of the banking union with a common deposit insurance programme would also greatly contribute to economic and financial resilience. Together with risk-based capital requirements on sovereign exposures, a European Deposit Guarantee Scheme would delink the financial health of banks from the countries in which they are located.