However, if the policy impairs financial system stability, the supply side of the economy – for example, the productivity growth rate and the potential growth rate – may also be adversely affected, causing losses in social welfare.
It is of paramount importance to financial stability that our supervisory authority has the competences to match the large banks. And it is equally important that we have a resolution authority with the necessary insight and resources to resolve the largest Danish banks. It is considerably easier to build up and maintain such supervisory powers if you have many "customers".