The new regulatory and supervisory framework has the potential to steer us towards deeper cross-border integration, and, in the process, to address Europe’s over-reliance on large banks. Evidence before the crisis suggested that the integration of retail lending markets may be a more efficient mechanism for cross-border risksharing than secured or unsecured interbank markets.
It is important that the banking union  14  Is Europe overbanked? Report of the Advisory Scientific Committee of the European Systemic Risk Board, No 4/June 2014. 15  Please refer to the Financial Stability Board data gaps initiative and the consultation paper of the Aggregation Feasibility Study Group on approaches to aggregate OTC derivatives data, February 2014.