However, I believe that a special regime for financial supervision is warranted for the euro area. Euro area financial institutions require a different quality of supervision as they lack an exchange rate to “bottle up” cross-border capital flows, thus heightening the potential for systemic risk.
With the overall framework as a reference point, strategic planning  BIS Review 72/1997  -3-  activities are proceeding with new energy at the Reserve Banks, at the Board, and with respect to cross-cutting major functions such as the payments system and bank supervision and regulation.