But for all banks subject to the assessment it cannot be excluded that problems still remain. We need to uncover and address these problems now, before the single supervisory mechanism is launched. Meanwhile, a comprehensive banking union has to comprise more than just an effective single supervisory mechanism. It needs to be complemented by a single resolution mechanism.
This is a necessary step to solve the too-big-to-fail-problem. Large banks must be able to fail without endangering the stability of the whole system. Otherwise, the government would have to step in to prevent a systemic crisis. This would create an asymmetry: Heads, banks win, tails, taxpayers lose.