Such banks have a strong presence in Europe: in almost half of the euro area countries, more than 60% of the total bank assets are held by smaller banks. Taking the euro area as a whole, approximately 30% of the total bank assets are held by smaller banks1. These are significant amounts.
To preserve financial stability, the Supervisory Board would be able to assert control over all banks in participating countries. Let me say something more on how such a system could operate. The European supervisor will work as a decentralised system with the Supervisory Board at the centre.