Whilst the count of banking failures in the USA now reads like the death toll in Afghanistan, we in COMESA have had no banking failures, no collapse of confidence, no credit crunch, no gross excesses in risk taking, no gigantic bailouts and no government take-over of vast swathes of the financial services, creating an unprecedented moral hazard for the whole finance sector.
The comprehensive assessment of the balance sheets of the largest euro area banks, which preceded the launch of the (SSM), enhanced transparency and dispelled doubts about the banks’ resilience. Further progress is expected as the SSM brings harmonization of supervisory and business practices, reducing investors’ perception of risks.