Indeed, international expansion is one of the most attractive growth opportunities for the profitable, capital rich European banks. With the ongoing integration of European financial institutions and markets, the conduct of financial supervision in Europe has moved beyond its primarily national orientation. Supervisory rules and regulations are progressively internationally harmonized – Basel II is in this respect a leading example.
“Unconventional monetary policy – a regulatory policy appraisal” was the title of a speech delivered by the then ECB (European Central Bank) Executive Board member Yves Mersch,[13] in which he argued that the European Central Bank’s actions were motivated by monetary policy and consistent with regulatory policy principles.