New technologies and the intensification of competition point to comprehensive consolidation in the banking sector in the next few years. As a consequence, banking supervisors are naturally facing correspondingly great challenges. Clearly, questions of systemic stability are moving to the top of the agenda for banking supervisors. IV.
Besides the globalisation of the financial markets, the launch of European Monetary Union constitutes a particular challenge of its own. Monetary policy is now being applied to a major financial area. Moreover, this area is undergoing a very rapid process of change, partly propelled by the euro itself.