Centralised liquidity management at group level seems clearly beneficial from the perspective of financial integration. However, there are also risks associated with closer integration in the banking union. As supervisor, the ECB can grant waivers for liquidity requirements at national as well as crossborder level on a case-by-case basis.
While the creation of a truly European banking system is certainly in the ECB’s interest, its supervisory mandate calls, above all, for the safety and soundness of the institutions under its supervision.