The envisaged creation of a single supervisory handbook by the EBA is complementary to this approach. Best practices should become standard practices. The single supervisory handbook should also ensure that in cases where banks are supervised in a decentralised manner within the system, practices are consistent across countries.
Financial institutions have also stretched their global reach. According to Federal Reserve data, U.S. offices of foreign banking organizations increased their share of U.S. bank deposits from around 2 percent in the early 1970s to around 15 percent in recent years.5 Several of the largest U.S. financial institutions have vastly expanded their global operations over this period.