Moreover, these approaches are built on a premise: that more liberalisation is always better, and that less liberalisation is costly to economic growth. I think it is far from clear that more liberalisation is always better, as it also comes with problems – increased financial instability for example.
Thus, while a smart system of enhanced equivalence might be sensible, we would first have to find a suitable approach. On the other hand, the subsidiarisation option – ie requiring a foreign bank to establish an independent subsidiary – would not only be well suited to preserving financial stability and democratic accountability.