In Europe, the answer is simple: the banking union should be taken seriously. The essence of the project is to “denationalise” supervision of large banks by entrusting it to the ECB, in order to harmonise supervisory methods and create distance between the supervisor and the supervised entity.
I would not exclude to revisit our assessment criteria, also about the treatment of NPLs in M&A. And what about the capital we require merged entities to hold? Do our requirements appropriately reflect the synergies reaped by mergers?