Shin (2010): “Macroprudential policies beyond Basel III”. BIS central bankers’ speeches  of insured deposits to fund other, more risky, banking activities has skewed incentives and competition. Banks’ incentives to sound long-run risk management have also weakened.
National measures to implement regulatory reforms and the lack (until recently) of sufficient EU wide frameworks in supervision and resolution are a concern to the well functioning of the internal market in the area of banking. Common rules and institutions would also facilitate the much needed undoing of the bank-sovereign loop. What has already been done?