Other things being equal, this will give the banks in question a competitive edge over the banks of “outsider” member states – even if they have credible national supervisory authorities as in BIS central bankers’ speeches  3  Denmark’s case. If Denmark does opt out, this may require tighter supervisory practices.
In addition, investors can be expected to require more ambitious levels of excess capital and liquidity than for banks within the union. It is also in the clear interests of Denmark that a shared practice is established for crisis management of banks. The Single Resolution Mechanism will make it easier to perform crisis management of cross-border banks.