Matthew Elderfield: Micro-macro schizophrenia – Banking Union and the European capital dilemma Address by Mr Matthew Elderfield, Deputy Governor of the Central Bank of Ireland and Alternate Chairman of the European Banking Authority, to Bloomberg, Dublin, 26 November 2012.
*  *  *  European regulators face a dilemma – a bad case of policy schizophrenia – in deciding the pace of the next steps of bank recapitalisation. With the fiscal policy break full on, and the monetary policy throttle full back, what is the right calibration for prudential capital policy? From the micro-prudential perspective, the answer is more and faster.