IMF staff have proposed the creation of an integrated framework for crisis management and resolution, including a European Resolution Authority (the “ERA”) for cross-border banks in Europe. The existence of such a body will greatly reduce impact on the European financial system when a major financial crisis has erupted.
It appears that the idea of ERA may perhaps expand internationally to provide a more stable financial environment in the event that an international financial crisis occurs. Cross-border supervision is particularly important to Macao as the majority of banks operating in Macao are financed by overseas capital. Epilogue 20)  4  So far, the degree of recovery varies from one economy to another.