Finally, in order to cut the ties between individual sovereigns and banks and achieve a fully integrated banking system that mirrors and supports a fully-fledged Economic and Monetary Union, we need to construct a banking union. Let me first define what I mean by a banking union. It is an institutional framework which ultimately should have three legs: a single supervisory mechanism (SSM), a common resolution structure and a shared deposit insurance. The SSM would bring all supervisory decisions about euro area banks under one roof, at the ECB, allowing supervisors to take into account externalities and general exposures to systemic risk. The common resolution structure, with a unified resolution regime and single resolution fund, would manage efficiently the wind-down even of large cross-border banks. Shared deposit insurance would reassure depositors that their money is safe in any euro area bank, regardless of its country of operations or legal domicile. These three elements, when operational, would effectively sever the link between banks and sovereigns, and support the functioning of the EMU. Euro area institutions would be responsible for the euro area banking system, and the euro area sovereigns as a whole would back it. What I would like to stress here is that the banking union, agreed upon by the Heads of State or Government at the end of June, is both a game changer for the crisis and a leap forward for Europe. It will change the dynamics of investors’ decisions.
This would include not just decisions to purchase products, but also in their day-to-day actions such as in their spending and saving habits. It should also include understanding how we can help consumers avoid making mistakes, such as to fall into scams – not just investment scams and get-rich-  2/3  BIS - Central bankers' speeches  quick-schemes, but also scams that use social engineering to trick customers into divulging their banking and payment security credentials. As all of us here would know too well, scams have been gaining significant momentum since the pandemic, and continues to be a sinister threat not just in Malaysia but also in other countries. Recognising this threat, BNM has instructed banks to step up security measures to protect their customers, and is working closely with law enforcement agencies to ensure swift action against perpetrators. But while these measures are necessary, they will not be sufficient without the first line of defence – that is, for consumers to remain vigilant, knowing how to avoid getting duped. This is ultimately a matter of financial and digital literacy. For this, the evidence-backed approach that today's Symposium is committed to in educating financial consumers will be a crucial part of the whole-of-nation approach needed to combat scams. Before I end my speech, I would like to reiterate that financial education is more relevant than ever in the post-pandemic era.