•  Up until now the home markets of the larger countries, in particular, have afforded sufficient opportunities for mergers and diversification, thus eliminating the urgent need to look across national borders. •  Differences in corporate cultures, which tend to cause friction, become more prominent in cross-border mergers, especially where financial institutions of countries with different banking systems are involved.
It has been activated in boom periods, and was released in many countries during the COVID-19 pandemic. Member States are currently re-activating the buffer in response to increasing vulnerabilities (Figure 9).