The competition argument is another aspect to be considered. Domestic competitors of the subsidiary of a foreign banking group could be disadvantaged because they would have to accomplish different requirements than the subsidiary of the foreign group that received its approval from the home supervisor. An example would be a host supervisor who does not allow his banks the use of advanced approaches.
This would risk a repetition of the  BIS Review 17/2004  1  policy errors of the last economic upswing, when insufficient consolidation efforts and tax cuts without adequate expenditure restraint laid the foundations for the recent fiscal difficulties. All Member States would benefit from the strengthening of the sustainability of their public finances.