One of the major advantages of the Single Supervisory Mechanism is that it obtains comprehensive information. All supervisory reporting data for the most significant banks will thus be accumulated by a central authority in future. This information, which previously only existed at the national level, can be bundled to facilitate cross-border comparisons.
In this way, the supervisor should be able to identify risks faster and better in future. The Single Supervisory Mechanism also reduces the risk of supervisors developing an all too close relationship with “their” banks. Local knowledge is certainly of great importance in the banking business. But we should also keep an eye on possible misaligned incentives in national supervision.