Another important milestone leading to a pan-European approach to supervision has been the creation of the European Systemic Risk Board (ESRB) to strengthen macroprudential supervision within the EU as a whole, which has filled one of the most acutely felt institutional gaps during the crisis.
Until recently, however, under the umbrella of the same legislation, we have witnessed regulatory competition to attract business, the oversight of cross-border groups has suffered from a lack of coordination and the compliance process has been fragmented along national borders. For this reason, it is difficult to overstate the importance of the commitment of EU institutions to a “single rulebook”.