Most importantly, the steps being taken to create a banking union should help to address existing balance sheet problems. The initial focus is on banks’ balance sheets. The comprehensive assessment of their balance sheets currently being done by the ECB is a critical element. Thousands of supervisors are carefully scrutinising the books of the euro area’s largest banks.
Second, it is generally accepted that financial integration is a key factor in the development and modernisation of the financial system, which, in turn, leads to a more efficient allocation of capital and an increased potential for economic growth. The recently renewed Lisbon programme has two main goals: to strengthen growth and increase employment in Europe. The ECB fully supports this programme.