This would give the EBA and the European Commission a legal footing that makes it easier for them to incorporate simplifications into guidelines and technical standards.3 Of course, this can only be achieved if clearly defined objectives are put in place.
But we should also be cognizant of possible downside risks. In this regard, the logical mitigating factor is effective cross-border surveillance and the ability to take collective but pre-emptive actions. Unfortunately, that is not as easy as it sounds. ASEAN member states are at different stages of financial market development.