The costs of failures in the financial system should be borne by those who cause them – the shareholders and potentially also the creditors of financial institutions – rather than by the taxpayer. The agreed rules for bank resolutions therefore have to be rigorously applied – and creditors have to bear losses in a resolution.
To sum up, a cross-check of the outcome of the economic analysis with that of the monetary analysis clearly confirms the assessment that upside risks to price stability prevail over the medium term, in a context of very vigorous money and credit growth and with no significant signs of supply constraints on bank loans to households and non-financial corporations.