Let me elaborate on this issue. Any bank, taken individually, may have an incentive to strengthen its capital adequacy by curtailing lending. This does not have strong counterindications if other banks have incentives to expand lending.
Moreover, having a European resolution mechanism will ensure that bank shareholders and bondholders will be first in line to absorb losses when a bank fails. The guiding rule should be “bail-in” of creditors, not “bail-out” by European taxpayers. And both stronger supervision and resolution will reduce potential risks for the ECB by confirming the soundness of our counterparties.