Second, Europe lacks as yet a network of large banks established across all territories, as country-based banking systems are still predominant. Institutions tend to have a limited presence at EU level, while having systemic importance in the territory where their business is concentrated.
This stands in contrast to what is seen, for instance, in the United States, where large banks with reach across the country coexist with small local banks, which are not systemic in nature. In the current framework of a banking union still under construction, national authorities continue to be responsible for national financial stability, i.e.