Interesting recent research seeks to identify observable variables that could be used to monitor credit conditions and detect trends that could threaten the performance of the real economy in the future. 16 This research is promising, and it could be used by supervisors to inform their thinking as it develops further.
The creation of the single market in Europe has made things much easier. The European Passport made it possible to set up branches anywhere in the EU without requiring additional authorisation. However, barriers to market entry still remained.