Here, the SSM expects banks in the euro area to have sufficient local capacity to manage at least an evident portion of their euro-denominated business themselves and not to fully outsource it to other entities within the group.
It is true that, for the present, the economies of some Asian economies appear to be decelerating, mainly because of China’s economic slowdown. Yet this means that the risk is declining that an overheating economy might hurt sustainable economic growth. This might be compared to “speed control,” conducted for a limited period to ensure a higher rate of growth over the long term.