For instance, the European text recognises as CET1 instruments deferred tax credits and in some instances the shares of cooperatives banks held by their clients, notwithstanding the fact that these shares are repayable when the clients terminate their banking arrangements. Competitive differences will thus continue to apply within the Eurozone, and even more within the EU.
That is, however, primarily an issue for co-legislators, and competitions authorities, rather than the mandate of the prudential supervisor. Ignazio Angeloni has also delineated how the SSM has been conducting the first round of the common Supervisory Review and Evaluation Process (SREP) in 2015, with a view to determine the so-called pillar 2 capital requirements.