The one lesson we can offer is that the configuration of competitive and flexible markets, management focused on shareholder value, and supportive macroeconomic conditions is not achieved without costs in terms of some societal dislocations and that configuration requires good fortune, sacrifice and discipline. Conclusion As you can see, these are interesting times in which to be a central banker.
With 2016 the European Banking Recovery and Resolution Directive (BRRD) has come into full force. Investors know that they may be called upon to take losses in the event of a bank’s distress, with public support a more remote possibility.