Likewise, the proposed targeted harmonisation of insolvency regimes should make it easier to reallocate resources from failing firms and provide more transparency for cross-border investors. Finally, a more efficient and harmonised withholding tax framework will reduce the burden and costs for investors and facilitate cross-border investment. Beyond the current institutional cycle and the CMU action plan, EU legislators should also look at structural issues, such as improving the current architecture to enable more consistent and harmonised supervision of markets. Conclusion The euro area financial system recently passed a real-life stress test. At the same time, the events of this spring underlined the importance of making decisive progress on the European banking union and capital markets union projects. The financial market turbulence and contagion from the United States and Switzerland would have been far more muted had we been closer to our goals. Completing the banking and capital markets union projects will increase cross-border bank lending and enhance the dynamism of public and private equity markets. Both are key to enhancing integration and stability in the euro area financial system, and they will also ensure that the funding for the green and digital transitions is available to meet the challenges ahead. Thank you for your attention. 1. Rose, J. (2023), “Understanding the Speed and Size of Bank Runs in Historical Comparison”, Economic Synopses, No 12. 2. Report from the Commission to the European Parliament and the Council on the Single Supervisory Mechanism established pursuant to Regulation (EU) No 1024/2013 (COM/2023/212 final). 3.
Sabine Lautenschläger: Navigating uncertainty – governance, risk management and leveraged finance Speech by Ms Sabine Lautenschläger, Member of the Executive Board of the European Central Bank and Vice-Chair of the Supervisory Board of the Single Supervisory Mechanism, at the 17th Annual Risk Management Convention by the Global Association of Risk Professionals, New York City, 1 March 2016. *  *  *  Ladies and gentlemen, It is a great pleasure to be here today, as it gives me a welcome opportunity to exchange ideas on risks and risk management with high-ranking risk managers. Discussing topics of risk management is doubtless necessary given the current macroeconomic environment. In 2008, the financial crisis turned the Great Moderation into the Great Recession. Today, almost eight years later, we still live in challenging times. The Great Recession has now turned into the Great Uncertainty. Quite recently, financial markets experienced another flare-up of that uncertainty. Share prices of European banks, for instance, have been extremely volatile. On some days, we saw prices rise or fall in double digits.