Even if the true slope of the Phillips curve were to be steeper than is suggested by reduced-form estimates, the fact that it is often global rather than domestic slack that matters for price-setting reduces the sensitivity of the economy to interest rate changes on a much broader level.
The German banking system is very diverse – in particular, there are a large number of small banks. The French banking system is more dominated by large banking groups, similar to South Africa’s. 2/5  BIS central bankers' speeches  The important thing is that, as supervisors and regulators, we must remain neutral towards such differences.