And these directives still have to be transposed into national law. That in turn opens the door for significant differences between countries. One of the many examples relates to what is known as “fit and proper” requirements. Bank directors have to fulfil certain criteria of competence and probity before they can take up their job. However, these criteria differ across the euro area.
Tenth Annual Report of the Federal Reserve Board, Covering Operations for the Year 1923. Washington: Government Printing Office. Bordo, Michael D., and David C. Wheelock (2013). “The Promise and Performance of the Federal Reserve as Lender of Last Resort 1914–1933,” in Michael D. Bordo and William  44  See Yellen (2012) for an elaboration of this point.