Therefore, there is a priority to complete the Banking Union with a European Deposit Insurance Scheme and the Capital Markets Union in order to restore intra-European financial flows, to improve stability in the banking sector and to promote private risk-sharing in the EU.
In this context, the role of the ESM could be further enhanced, and among other things, to support Banking Union with a backstop facility. EMU should also enhance public sector risk-sharing by creating a centralised fiscal stabilisation tool. The European Investment Stabilisation Function, once fully and efficiently operative, could 5/8  BIS central bankers' speeches  be transformed into such a tool.