German banks have reduced their vulnerability since those days, slashing their funding gap by downsizing their stock of US dollar assets. What remains substantial, though, is the scale of the maturity mismatch of their US dollar investments.
To mitigate such risks, supervisory and regulatory frameworks of relevant jurisdictions need to be mutually consistent and discourage regulatory arbitrage of GSC issuers. Legitimate and sound fund transactions are the basis for financial stability and financial integration, and therefore, measures against money laundering and those to counter the financing of terrorism (AML/CFT) need to be implemented consistently across jurisdictions.