In the euro area we are currently struggling more with restrained credit growth. In other markets too, such as those for corporate bonds or shares, developments are currently within the range of historically comparable processes. Also, since the crisis the banking system has become significantly more resilient to negative shocks. The banks have strengthened their capital base.
The ECB, since becoming the banking supervisor under the Single Supervisory Mechanism, has played a part in banks Europe-wide complying with high and uniform standards. Should problems arise however, macroprudential instruments are best positioned to counteract financial sector risks, enabling monetary policy to focus on its primary objective of maintaining price stability.