After all, we should bear in mind that in federations like the USA and Canada, economic risks are primarily shared through private channels. By comparison, fiscal policy takes a back seat, as only 10% to 25% of risks are shared in this way.5 The Bundesbank is therefore explicitly backing the project of the European capital markets union.
There has been a reduction in statutory preemptions to less than a third of commercial banks resources. The mandatory component of market financing of Government borrowing has decreased. While directed credit continues it is now on near commercial terms. Valuation of banks' investments is also attuned to international best practices so as to appropriately capture market risks.