Finally, in both cases, governments accept the transfer of supervision and resolution of banks to the European level in what has to be considered a remarkable sharing of sovereignty and a desire for “ever deeper union”. 2  BIS central bankers’ speeches  With these important steps, the first goal of Banking Union to separate banks from sovereigns has, in practice, been achieved.
In fact, the policy rate was cut from 5% in December 1985 to 2.5% in February 1987, and remained unchanged for more than two years. Then, as we know only too well, the stock market began to drop in January 1990, falling from more than 38,000 to around 16,000 in two and a half years.