What lies at the origin of these differences in labour productivity developments in the two areas? Specific policies targeted at increasing employment – in particularly for the unskilled segment of the labour market – certainly contributed to the decrease in labour productivity growth in the euro area.
In establishing a new bank, bank executives explained the challenges in developing a business plan and risk-management framework that addresses how the bank can generate a sufficient profit to provide an adequate return to shareholders. For a de novo bank, the cost and burden of starting from ground zero in establishing their risk-management and internal controls are high.