The consequence can be both a competitive funding advantage for these large firms and more underlying risk to the financial system. Important as it is, moral hazard is not the only worry engendered by very large, highly interconnected firms in financial markets.
When I was involved in founding Banque centrale du Luxembourg in 1998, the run-up period was even shorter, but the current task is far greater. However, we have the advantage of an excellent cooperation with the national central banks and supervisory authorities. And we can also build on the experiences of the European Banking Authority (EBA)…. ..which were not altogether positive, however...