For textiles, footwear and white electric goods, the process of hollowing-out is already so far advanced that the major part of production by Korean firms now takes place in China. Even in sectors where hollowing-out is still in the early stages, its speed is rapidly gathering pace.
In this context, the transformation of subsidiaries into branches has emerged as an answer to the host responsibility for covered deposits – however that implies, at least, when local undertakings are of systemic relevance to the concerned Member State, that: domestic supervisors should have a say in the day-to-day supervision and should have the capacity to react to strategic decisions affecting branches as they would have had 1/2  BIS central bankers' speeches  had it been a standalone entity; national resolution authorities are adequately involved and empowered in the definition of resolution plans and in the resolution action when it occurs.