Finally, there is a need also for enhanced co-operation between supervisors on a cross-sector basis, given that many EU banking groups are active in other segments of the financial system, namely insurance and securities. For instance, seven out of the 16 key cross-border players have also been identified by the European Commission as “financial conglomerates” in accordance with the Financial Conglomerates Directive.
But they do not deal with situations where the actual and prospective circumstances of the borrower, combined with the existence of the new insolvency framework, mean that full recovery of the loan cannot realistically be assumed.