With the establishment of the Eurosystem, solid foundations for a stable currency were laid. Maintaining price stability in the euro area helps to gain credibility and the confidence of European citizens in the stability of the euro. This will also contribute to the increased use of the euro outside the euro area.
Host country regulators, including those in the United States, had not exercised prudential oversight of some foreign  4  4  The current version of this obligation is set forth in Basel Committee on Banking Supervision (2012), “Core Principles for Effective Banking Supervision“ (Basel, Switzerland: Bank for International Settlements, September).