Foreign banks bring with them many advantages, especially in the case of countries with a limited experience with sophisticated financial markets. At first, they have access to better know-how and technology. More importantly, they are mostly immune from political interference. While local participants are often intimidated or pressured to give loans to well-connected borrowers, foreign institutions generally feel stronger to resist such pressures.
* * *  Resilient recovery in the euro area The economic recovery in the euro area is continuing at a moderate, but firming, pace, and is broadening gradually across sectors and countries. Real GDP growth has expanded for 15 consecutive quarters, growing by 0.4% during the final quarter of 2016 according to the Eurostat flash estimate.