Empirical studies indicate that banking crises come at a high real economic and fiscal cost.7 A wait-and-see strategy is the most expensive approach of all, however. That’s why the Bank Recovery and Resolution Directive (BRRD) is an important step towards better handling troubled banks. It harmonises the legal framework for bank resolutions in Europe.
BIS central bankers’ speeches  1  Furthermore, combined with a single supervisory rulebook, a common supervisory culture can create a level playing field and increase transparency and confidence in the system. A SSM can also eliminate barriers to the flow of information between supervisors of crossborder institutions.