For the first time we are not the epicenter of a crisis so conditions for contagion are less obvious. Latin American countries in particular seem to be better prepared to face this new financial turmoil. The majority of the economies in the region are experiencing robust growth, underpinned by a buoyant domestic demand.
At the same time – going beyond the confines of the banking sector and banking union – we must make progress in developing a capital markets union to enhance further the scope for cross-border private risk-sharing. In addition, we need to prevent imbalances – whatever their nature – from developing into a crisis environment.