I do not think that this theoretical concept is very relevant for the role of the Oesterreichische Nationalbank and can imagine that the Austrian bankers present in this room are not always too happy about that.
But generally speaking, once supervision is elevated to the more remote European level, supervisors are expected to be less prone to “deal making” and forbearance might be less likely to occur – which could, of course, add to the increasingly pro-cyclical effects of the newly emerging supervisory structure in Europe.