Fourth, attempts are being made to help the cross-border issues with the creation of supervisory “colleges” for large institutions. These are designed to promote better sharing of information across countries. Agencies on the Financial Stability Board are also working on protocols for cross-border crisis management.
These exercises, built on common scenarios derived from the ECB adverse scenario, are designed to assess the resilience of banks and the implications for financial stability of the EU banking system as a whole on a consistent and comparable manner. The regulatory paradigm that relies on self regulation has proven to be insufficient.