But above all, it can also contribute to better risk assumption by the private sector. The Single Resolution Mechanism in particular is expected to make private investors participate in risks that materialise. But for this to become reality, the new rules need to be rigorously applied, and exceptions to the bail-in of creditors must be minimised.
6  BIS central bankers’ speeches  On the whole, the banking union means that the authority for supervising banks will be transferred to the European level. The need for this is nothing new – the Delors Report already pointed out exaggerations that financial markets are prone to, and the associated constraints that this entails for national economic policy.8 Thank you very much.