More write-downs are expected to be revealed in 2008 and these expectations have been broadly confirmed by the financial results reported for the first quarter of 2008. The disclosure of the full-year 2007 financial results of euro area major banking groups revealed that the subprime-related turmoil has had a material impact on their profitability, but their capital buffers remained largely intact in 2007.
Advances on the digitalisation front have also sparked a debate surrounding digital currency. July saw the Eurosystem launch a two-year investigation phase on the introduction of a digital euro. This digital currency could be implemented alongside commercial banks’ book money as failsafe, universally accepted central bank money.