And since then, we’ve achieved a lot. However, we could do more, and that brings me to regulation. How European is regulation? Well, it’s true, of course, that there is a single rulebook. But by and large, regulation in Europe remains fragmented to a degree that makes it hard to reap the full benefits of European banking supervision.
And the problem starts with the scope of that supervision. Large investment firms and thirdcountry branches are still not covered by it. This situation should be changed to restrict regulatory and supervisory arbitrage. Then there are the options and national discretions contained in European regulation. Some of them are still exercised differently across the euro area. It’s up to legislators to harmonise them.