All of this would be a game changer, not just for our own stability and prosperity, but for that of the global economy, too. It does require us to think differently about Europe. It will almost certainly not be easy. But as St Francis of Assisi once said, “Start by doing what’s necessary; then do what’s possible; and suddenly you are doing the impossible”.
New trends in regulation are seeing a shift from prescribing detailed rules and regulations to a focus on identifying risks at the system level, and on ensuring that individual banking institutions have the necessary capacity in terms of internal controls and systems to undertake and manage risks.