The banks, even when they have subsidiaries, are tending to manage by way of separate entities more and more. Banks today are exposed to country risk because most of the assets are related to the country. This means that, if you have a shock in the country, the banking system is not diversified enough.
Of course, the fact that we are in a monetary union limits the room for manoeuvre: you don’t have the exchange rate instrument, you have a single monetary policy. So it is absolutely vital to evolve towards pan-European banks, banks that are geographically diversified and also that would be backstopped by EMU as a whole.