No domestic aspect or concern must be overlooked. Even in the case of the systemic banks that will be directly supervised by the ECB, national supervisors will still be involved in on-site inspections. In fact, there will be joint supervisory teams. The assignment of supervisory responsibilities to central banks mirrors the prevailing consensus among experts and academics6.
There are many synergies between monetary policy and banking supervision, and in our case there are benefits from sharing micro and macro-information on monetary policy, bank supervision, and the oversight of payment systems. Moreover, an important lesson from the crisis is that there can be no price stability without financial stability. Most of the time, monetary policy and financial stability measures work in harmony.