The issue of a more effective regulation has gained due relevance only recently, and it is necessary to accelerate work to develop and adopt tools which improve our ability to monitor and prevent those risks. * * * Engaging with a balanced and inclusive recovery requires long sightedness on the challenges and opportunities raised by pre-existing as well as newly emerging structural transformations.
I am referring here specifically to the European resolution regime. At this point of the journey, the next milestones concern realigning the European resolution framework and its national counterparts, and banks building up bail-in-able capital in order to meet their MREL targets. Once these tasks have been completed, the rules will do their part to reduce the sovereign-bank nexus.