The resulting divergences in the capital strength of banks undermined confidence in their soundness. European supervisors identified 175 options and discretions (O&Ds) available under EU law, 130 of which are available to national supervisors and are now applied in a uniform way across the euro area. More harmonised rules have helped re-build confidence in banks and reduce compliance costs for cross-border groups.
Another issue which has received attention is what level of superannuation contributions is necessary to ensure an adequate retirement income. Determining the adequacy of contribution rates is difficult because the modelling relies on various assumptions about future investment returns, income growth, length of retirement etc. There is also a need to specify what is meant by “adequate”.