These standards promote safety and soundness and reduce competitive inequities among banking organizations operating within an increasingly global market. The full range of its supervisory activities gives the Federal Reserve ongoing access to critical information about the banking system that is pertinent to our assessment of the state of the overall economy and has proved highly valuable during the most recent market stress.
More generally, within the framework laid out in legislation, the post-Brexit EU will have to develop and implement a revised supervisory approach that recognises the shift in the geography of cross-border trade in financial services within the EU27, with less reliance on the UK as a bilateral trading partner and more reliance on newly-formed and expanded connections across EU27 member countries.