Although overall financial stability by itself cannot guarantee the achievement of the ultimate macroeconomic objectives, it is an important precondition for reaching those goals. In order to comply with its obligation and to meet its commitment, the central bank should pursue its objectives with a medium and longer term view in mind.
Still, at the national level, the structure of the banking industry continues to differ greatly, ranging from very unconcentrated in a few nations – the United States and Germany – to highly concentrated in about half of the nations in our study.