In this context, the transformation of subsidiaries into branches has emerged as an answer to the host responsibility for covered deposits – however that implies, at least, when local undertakings are of systemic relevance to the concerned Member State, that: domestic supervisors should have a say in the day-to-day supervision and should have the capacity to react to strategic decisions affecting branches as they would have had 1/2  BIS central bankers' speeches  had it been a standalone entity; national resolution authorities are adequately involved and empowered in the definition of resolution plans and in the resolution action when it occurs.
"Switzerland's growth deficit: A real problem - but only half as bad as it looks." Available at http://www.snb.ch/d/download/referate/ref_050304_koh.pdf. BIS Review 77/2006  1  deflating GNP by the price index for domestic purchases rather than by the GDP deflator - the price of domestic output - it captures the terms-of-trade effect.