Later, we took out unwarranted redenomination risks from sovereign debt markets, helping attenuate the banksovereign nexus. More recently, we have launched a credit easing package which aims, among other things, to ensure that bank deleveraging does not produce excessive dispersion in lending rates across countries. The evidence suggests that each of these measures has been successful.
7 Still, it is clear that fragmentation risks can only be definitively removed by addressing their institutional drivers. That is why the creation of Banking Union, which is the topic of our conference today, was such a fundamental addition to monetary union. The Single Supervisory Mechanism provides a framework for a more integrated banking market, which would be less likely to fragment under stress.