Would it mean that these banks could hold less capital, less liquidity? In my opinion, proportionality means simpler rules for smaller banks. But it does not mean that the rules should be generally less stringent, or that banks can hold less capital or liquidity. Finally, a crucial issue is where to draw the line between small and large banks.
This has helped the region to embark on a process of catching-up economically with the wealthier parts of the EU and to gradually improve their living standards. At the same time, these close economic and financial ties imply that the Western Balkan economies have also become highly exposed to economic developments in the region.