To this end, a mix of general and specific burden-sharing is preferable. Under an arrangement of general burdensharing, all member states contribute proportionally, e.g. to the size of their economy, implying a partial transfer of budgetary responsibility to the EU level. This makes sense, since the stability of the European financial system is a public good and of benefit to Europe as a whole.
Many countries where foreign banks dominate have seen them vigorously acquiring business at the expense of local banks in boom times but retrenching their operations equally vigorously in times of stress. This has been the experience in varying degrees of all emerging economies, including countries like India where foreign banks are present only in the branch mode. 29.