These challenges relate to the creation of what we call “macroprudential space” and to the complementarities between monetary policy and macroprudential policy in a monetary and banking union. As I will argue, addressing these two challenges will increase the effectiveness of the macroprudential framework and strengthen the resilience of the euro area banking sector to major unexpected shocks in the future.
I wish to express my appreciation of the Customer Due Diligence (CDD) document - a joint product of the Basel Committee on Banking Supervision and the Offshore Group of Banking Supervisors. While the document recognises the cross-border implications of financial transactions, it also favours exchange of information pertaining to customer adoption policies and procedures of financial institutions.