How European banks can benefit from a single supervisor I have touched on the elements needed for the new authority to function successfully. Let me now address what I see as the main implications for banks. A strong area-wide supervisor, capable of acting quickly and effectively, can restore and uphold business confidence in all banks, regardless of their location.
It can therefore contribute to a revival of interbank and credit markets. Second, the single supervisor should ensure homogeneous supervision, convergence of practices, a level playing field and therefore a reduction in banks’ compliance costs. An important element to achieve convergence is the single rulebook that the EBA is developing. But ensuring convergence of regulation is not enough. Supervisory practices also need to converge.