Second, European banking resolution should provide a framework for harmonised and predictable burden-sharing through the private sector, which is key to create the conditions for deeper retail banking integration, and hence for the financial risk-sharing benefits of monetary union to materialise. What is needed now is for Banking Union being completed in all the areas that have been identified.
During the boom period expectations of tight monetary policy to offset the excess demand pressure probably contributed to the persistently high exchange rate throughout the period, causing considerable discomfort and worries about the sustainability of parts of New Zealand’s tradable sector. After the global finance crisis there are new challenges for monetary policy to deal with.