Bank A actually generates significant economies of scale, so that it is socially optimal for it to remain at its current size. Banks B and C, by contrast, have very modest economies of scale, not enough to outweigh the costs that their size and complexity impose on society.
Meanwhile, the contribution of domestic demand to GDP continued on its downward path, in part on account of subdued wage growth and a tight fiscal policy (see Chart 12). 13 / 22  BIS central bankers' speeches  14 / 22  BIS central bankers' speeches  In contrast to Germany, France entered Monetary Union in much better shape.