First, European banking supervision enables banks throughout the euro area to be supervised in a uniform manner and subject to the same high standards. These harmonised standards will emerge as national supervisors share their experiences with their international peers and adopt national best practices in banking supervision at the European level.
Second, European banking supervision makes it possible to effectively identify and manage cross-border challenges. This is a crucially important point because large banks usually operate in more than one country. Third, switching banking supervision from the national to the European level will add a degree of separation between supervisors and the banks they supervise.