What is needed, beyond formal agreements, is the confidential and frank exchange of all information among supervisors in order to identify problems early on, before they become threatening. In this era, we should also be vigilant to avoid abuses of the financial system for illegal activities, such as money laundering and terrorism financing.
Of course, we take comfort from the fact that the Greek banks that have expanded in the Balkans are quite strong, well above the necessary prudential ratios.