We see many benefits not just from a regulatory perspective. The LEI has helped to make the financial system safer. Authorities can use it for many different regulatory purposes. They can for example use the LEI to monitor financial risk, to keep track of financial entities’ aggregate risk exposure, for resolution planning.
This could build a bridge between SMEs and non-bank sources of finance. Let me address each in turn. Strengthening banks: the role of banking union The euro area economy is slowly beginning to improve, indeed the latest Commission forecasts project 1.1% growth for next year. In turn, the demand-side constraints on bank lending should gradually lessen.