To ensure that liability and control are kept in balance, banks that are subject to European supervision also need to be resolved at the European level. But this also means that losses originating from the time before the launch of the banking union need to be remedied under national responsibility.
Investors are complementing their fixed-income portfolios of government bonds and bank obligations by buying corporate bonds. The flip side of this coin is called “disintermediation”. Germany, as you all know, is well known for its bank-centred system of corporate finance.