It should be borne in mind that the ESM may also purchase government securities in the primary and secondary markets. The ESM currently finances itself by issuing debt instruments on the market with maturities that range from one month to 45 years.
We must not repeat the mistakes made before the financial crisis and deregulate just because we think this would fuel economic growth, while in reality it actually fuels the next crisis. Empirical studies suggest that tighter capital requirements are in fact beneficial, and not just for stability reasons. For example, they reveal that higher levels of equity capital are correlated with higher lending volumes.