A European supervisory system must therefore take account of the financial reality of an increasingly integrated financial system as well as the political reality of national legal and administrative systems. Moreover, and I would like to place particular emphasis on this, the supervisory structure should also be competitively neutral.
These actors include peer-to-peer lenders and technology firms offering financial services, but also to some extent insurance companies or investment funds. While more competition is surely welcome, market funding should complement, not replace, the role of banks in financing the economy.