It is also important for supervisors to always remain aware of their true objective: to uphold the public interest. They must not allow themselves to succumb to a sort of “Stockholm Syndrome for supervisors” and confuse the public good with that of the supervised banks. BIS central bankers’ speeches  3  3.1  The new European supervisory mechanism ...
This is an area where the new European supervisory mechanism can make a key contribution. By adding a European perspective to the national view, it will put more distance between the supervisor and the supervised entity. This will minimise the danger of supervisors getting all-too-close to their banks and thus treating them with “kid gloves” out of national interest.