But equally, it is important that the FSA’s approach to incoming branches and to liquidity and capital support from banking groups based elsewhere in the EU does not undermine the single market. This issue underlines another important role that the EBA plays, beyond that of policy and rule maker: its mediation mandate to resolve disputes between supervisors and ensure the application of EU law.
This is a crucial role which has yet to be tested in earnest. And it could be of increasing importance as a tool to tackle supervisory actions which undermine the operation of the single market for banks.