Through the lenses of evolutionary adjustments, the move towards the banking union was a patch to our historical supervisory system, because it, too, had shown to be a living organism that had reacted in an undesireable way to the financial crisis.
These fears were creating severe turbulence in financial markets and preventing our low interest rates from reaching the countries where they were needed most. As a result, we saw a risk of a widespread credit crunch in these countries. Questions over fiscal sustainability and growing market distrust were starting to spill over into their respective banking sectors.