This would make life easier for banking groups that span the entire EU. And third, they support the principle of proportionality. They seek to ease the regulatory burden on smaller banks. And that’s good: smaller banks generally represent a smaller risk and therefore do not need to be as strongly regulated as large banks.
But there are also items in the proposals that should be further discussed. First, supervisors need to be able to act quickly and flexibly, based on their judgement and expertise. A few proposals, however, seek to put a tighter frame around supervisory actions.