But I will not, at this point, go into further detail about the design of the banking union. Instead, I would like to expand briefly on the relationship between a banking union and macroprudential policy.
In contrast to the common set of rules of microprudential regulation, the essence of macroprudential policy is to detect, assess and respond flexibly to a build-up of systemic risk wherever and whenever it occurs. Even with a banking union, cyclical patterns in the euro area will vary to some extent.