These advances are likely to be far more important for the “de-zombification” of the European corporate landscape than monetary policy. For example, an ECB analysis shows that weak banks are more likely to extend risky loans to weak firms (Slide 23, right-hand side).
This suggests a need for governance similar to that for trade restrictions. The Organisation for Economic Co-operation and Development (OECD) countries have entered into a legally binding agreement—the Code of Liberalisation of Capital Movements—which is also open to adherence by non-OECD countries.