Moreover, the decentralised nature of the eurosystem, with monetary operations largely executed through the national central banks, may also facilitate a multi-polar financial system in the euro area. The capacity of a decentralised financial system to deliver the potential gains from a single market in financial services can be supported in several ways.
First, the Single Supervisory Mechanism is an important pillar for an area-wide banking union, with a common supervisory regime led by the ECB, with local implementation in partnership with national regulators. A robust banking union also ultimately requires a common European deposit insurance system and the full financing of the Single Resolution Fund.