But the monetary policy stance of the ECB has to be focused on the entire euro area. It cannot address divergences among individual euro area countries. That is the task of governments: they must undertake determined policy actions to address major weaknesses in the fiscal, financial and structural domains. We note that progress is being made in many countries.
Steps are already underway to tighten the capital adequacy norms for these conglomerates so as to ensure that the amount of capital that the group possesses on a consolidated basis is adequate not only from the discretionary risks that the group entities take but also sufficient from the nondiscretionary risks like operational, reputational, strategic risks especially from fiduciary activities.