2 (2) For an overview of the literature and an empirical analysis of the role of institutional factors in long-term  growth in the EU, see Masuch, K., Moshammer, E. and Pierluigi, B. (2016): Institutions and Growth in Europe”, CEPS Working Document No 421. 7/7  BIS central bankers' speeches
We also intervene in distressed banks, again under the framework of the FIA, to ensure that banks do not collapse with insufficient funds to repay their deposits. The second objective of regulation is to preserve financial stability; to prevent financial crises. This also involves ensuring that banks comply with the prudential regulations in the FIA.