Banking regulation: nearly all items on the reform agenda ticked off  But let’s return to the here and now. The first year of European banking supervision went very smoothly. But a functioning banking supervision set-up also needs a sound regulatory footing. From a regulatory perspective, we have now experienced seven years of reform.
It means improving economic governance. It means strengthening the rules to prevent unsound policies. And it means to prohibit individual countries from pursuing policies that can harm themselves and the euro area as a whole.