Overall, the banking landscape still resembles too much a collection of banking systems highly exposed to their domestic economies, with limited cross-border private risksharing. At the same time, unprecedented institutional progress has been achieved in a relatively short time span since the establishment of the Single Supervisory Mechanism.
This change is visible in the much more active role of the heads of state or government of the euro area countries – now institutionalised in the so-called “euro summits”. It is also evident in the more intense scrutiny to which national parliaments subject the economic policies of other Member States.