These developments have been much discussed so I will not dwell on them much today. The SSM and SRM (at least after 8 years, when the SRF is fully mutualised) will be indifferent to geographical factors in their supervision and resolution strategies.
Prudence, therefore, has to be exhibited by banks to ascertain whether the current levels of asset quality being exhibited is on account of improvement in fundamentals of business on account of deleveraging and efficiency gains or on account of support extended by the authorities through the measures elucidated above.