These are important steps forward as euro area firms rely to a very large extent on bank credit to finance growth and investment. Let us also keep in mind that these measures build on the achievements of ten years of financial regulatory reform, which should not be reversed. So what more should be done at the European level?
First, we need to further strengthen the ability of the financial sector to contribute to economic stabilisation. Increased financial integration is the key competitive advantage the euro area should leverage here. During the crisis, integration in the euro area reversed and it has only gradually recovered over the past years. The creditworthiness of banks remains linked to that of national governments.