Below are some key takeaways from the speech delivered by Yves Mersch, Member of the Executive Board of the ECB, at the Banking and Corporate evening organised by the Hauptverwaltung in Bayern der Deutschen Bundesbank, Munich, 22 November 2018.
- Euro area banks largely operate in their home markets, leading to overcapacity and making the Union more susceptible to fragmentation.
- An integrated financial market offers risk-sharing mechanisms that can be used to mitigate country-specific shocks.
- The resilience of the euro hinges on the implementation of the necessary economic and fiscal reforms. And further steps must be taken to boost private and public risk-sharing.
- Given the current state of our Economic and Monetary Union, further efforts to deepen it through political and economic convergence are clearly indispensable.
- Effective crisis management will be indispensable to protect the Member States from serious imbalances.
Share
