It will help make global financial markets safer by ensuring that global banks and banks with cross-border activities have to comply with a common framework of minimum capital, liquidity and risk management standards. The crisis clearly showed that supervision should not stop at national borders.
And it also showed us that cooperation between home and host supervisors is key to understanding the risks banks are exposed to when doing business across borders. In recent years, cooperation between supervisors has increased significantly, on the back of new global and European standards for home/host cooperation. Cooperation between supervisors has become natural; in fact, it has become essential.