A strong and independent supranational supervisor will contribute in a significant manner to the smooth functioning of the monetary union and to restore confidence in the banking sector. The regaining of confidence in the banking sector is key to reverse recent developments towards financial fragmentation and help restart a well-functioning interbank market. My intervention today is divided into two parts.
In addition to the point I made earlier about distributional consequences, administrative challenges abound in this area, and there will have to be an evolving system of review, feedback and learning as a fair, efficient and effective system is constructed. Other countries faced with similar problems are also struggling here.