In the final analysis, financial inclusion fosters societal intolerance to inflation, a social preference for macroeconomic stability and a sense of the long and variable lags with which monetary policy operates. This makes it possible for smaller monetary policy actions to achieve the same goals in a shorter period of time than otherwise. 4  II.
Subsequently, I noted that the European banking sector is still on its way from safety to soundness. But we also have to look beyond banking. Risks are migrating, and new risks are emerging. The financial system is evolving and becoming more diverse. Financial stability should incorporate such developments and, where appropriate, regulation should also catch up.