The great importance to economic growth of the calm in the security situation - and expectations with regard to the peace process - must not go without mention; these have a positive effect on the economy, in particular via tourism and domestic and foreign investors' desire to invest in Israel's economy. Nevertheless, despite all the above we may not rest on our laurels.
Excessive reliance on central banks in fact delays the necessary adjustments. Cheap funding may prop up non-viable banks for too long, while making them less and less resolvable. The significance of resolution for the monetary and banking unions is without question. In the euro area there are clear further constraints to resolving banking problems.