On the other hand the euro area is the largest commercial partner, with some 20% of total exports, against 16% for the US and 8% for Japan. The emergence of a European international currency is one of the results that was expected from the introduction of the euro and it is an obvious advantage for European companies.
Banks often have inter-linkages and might have significant common exposures to risks that will not be visible from the supervision of individual banks. Hence the need for macro-prudential surveillance, or the monitoring of the “prudence” of the “broader” financial system was identified and which culminated in the SARB creating such capacity for this purpose as far back as 2001.