On top of this, the European Central Bank newly hired around 900 employees for the new supervisory regime set up for the euro area and around 4,700 supervisors from national authorities all over the euro area had to be coordinated to serve this new institutional setup. 1 Believe me – I would prefer a (much) lighter workload.
But for supervisors, less work today often means a lot more work farther down the road. But clearly, the costs of regulation and supervision alone are inappropriate indicators of overor under-regulation and supervision. Even as seen from the banks’ perspective, cries of overregulation are too simplistic since they neglect the potential long-term benefits of these reforms for banks, such as increased strength and trustworthiness.