Of even more concern, the capital markets virtually seized up as market participants retreated from risk taking, and, for a time, credit was simply unavailable to many private borrowers at any price. The events of 1987 and 1998 had several common elements. First, they began with sharp movements in asset prices.
In relation to the prudential regulation of banks, there has been considerable progress in developing a banking union in Europe. In particular, the Single Supervisory Mechanism (SSM) of the ECB is now responsible for supervision in the euro area and is the direct supervisor for the largest banks, including the main Irish-resident banks.