There is more to a banking union than that, however. The aim is not only a better prevention of crises, but also the ability to cope with crises in fiscal terms, which means money – and not a small amount at that.
Also, country risk indicators, such as the Mexican government’s credit default swaps, rose less than those of many other emerging economies.4 Moreover, capital flows have continued to increase, albeit at a slower pace, particularly those oriented toward fixed-income assets. Foreign holdings of peso-denominated government bonds have reached new highs, although portfolio duration has dropped slightly.