Preventing the outbreak of such a crisis, or – if such a crisis unfortunately occurs – minimizing the effects to achieve economic stability is a challenging task, and students like yourselves who are going out into society cannot remain completely immune from such challenges, regardless of your areas of work in public organizations, private firms, or as academics.
Finally, cross-border banking groups are increasingly centralising key business functions such as credit risk and liquidity management, often cutting across separate legal entities in different countries. The growing prominence of cross-border banking has important financial stability implications. On the one hand, cross-border banking broadens and deepens banking markets, increases liquidity and risk sharing and thus strengthens the overall resilience of the European financial system.