For the EU, negative spillovers from national measures imply that the aggregate macro-prudential stance is weaker than the sum of the individual measures. Ultimately, it implies that financial integration based exclusively on national financial policies cannot ensure financial stability. This is because the joint pursuit of financial integration and stability exceeds the remit of national policies.
The crisis has also demonstrated how national boundaries are of limited relevance to regulate the activities and resolution of banks in a monetary union. A first response to ensure financial stability and promote financial integration is the coordination of macro-prudential policies.