In addition the trend towards a more capital market orientation will be met by the requirements for banking supervision as set up in the Basle II agreement. BIS Review 55/2001  3  Overall, the financial sector in Europe and Germany as a financial centre are well equipped to face the challenges and make use of the opportunities that the euro presents.
It was necessary to intervene to support financial stability. That was important in order to be able to continue the functions within the financial system that are critical to the real economy. Households, firms and authorities all depend on services provided by the institutions.