Progress has been made: over the past three years, the NPL stock of significant banks decreased by onethird, supported by our supervisory action. The proportion of significant institutions’ total assets accounted for jointly by Level 1, 2 and 3 assets has also fallen from over 30% to 23%.4 However, further efforts are needed from banks, supervisors and regulators.
At the same time, we should establish a credible common backstop to the Single Resolution Fund and create a European deposit insurance scheme. And, yes, this implies risk-sharing.