In short, European supervision and European monetary policy have proven to complement each other well. It is an approach which confirms the synergies that can be reaped when the right policies are combined at euro area level. 1  See, for example: Buch, C. M. and Prieto, E. (2014), “Do Better Capitalized Banks Lend Less? Long-Run Panel Evidence from Germany”, International Finance, Vol.
17 (1), pp. 1-23; Kapan, T. and Minoiu, C. (2013), “Balance sheet strength and bank lending during the global financial crisis”, Discussion Papers, No 33, Deutsche Bundesbank; and Osborne, M., Fuertes, A.M. and Milne, A. (2017), “In good times and in bad: Bank capital ratios and lending rates”, International Review of Financial Analysis, Vol. 51, May, pp. 102–112.