BIS central bankers’ speeches  3  These effects are then amplified in the presence of high levels of debt – as we see in the euro area today. The reason is that if second round effects take hold, the debt burden in real terms increases.
But I stand before you tonight to affirm that our banking system, in all its vital components – rural and cooperative banks, thrift banks, and commercial and universal banks, is in much better shape today than it was during the last crisis we faced.