To sum up, the euro area banking sector is becoming more stable overall, and given the euro area’s central role in global financial intermediation, this creates positive spillovers for the global economy. Banking Union will take this process forward by increasing confidence in supervision and ensuring that banks that need to be wound down, can be.
To the extent that this supports credit growth to the private sector, this will also generate higher growth in the euro area and help the global economy through that channel, too. Conclusion Let me now conclude. Advanced economies, Europe in particular, face a long period of slow growth that will test the quality of our institutions.