Well, we do aim to achieve a level playing field. But we do not seek to flatten the landscape. We do take into account country-specific circumstances that warrant specific supervisory treatment. And this is the case not only when we act as macroprudential overseers, but also when we act as microprudential supervisors, in particular when we assess the business models of banks. Here, we are even bound by law to “have full regard to the different types, business models and sizes of credit institutions”.1 We understand the value of diversity, and for good reason. Imagine that all banks had the same uniform business model. What would that do to innovation? What would happen to progress? And, equally importantly, what would it mean for financial stability? If all banks had the same business model they would all be exposed to similar risks. If that model was faulty, or were to be hit by an external shock, all banks would suffer. So, as any risk manager will tell you: diversification pays off. For that reason, we value diversity and account for it. We follow the principle of “same risks, same rules, same supervision” – which also means that different risks have to be treated differently – and we take a proportionate approach to supervising banks. So, the banking union is not at all about centralising power or doing away with diversity.
And they can be sure that their business partners are as well supervised as they themselves are. So, the playing field has become more even, which is essential if we are to achieve a truly European banking market. And that is our vision: a banking market that seamlessly covers the entire banking union; a market in which banks can offer their services to customers from all over Europe; a market in which they can compete on even ground. The benefits of such an integrated market are well known: it is more efficient, it is more innovative, and it is better able to support growth. This is true for the entire union as well as each country. Are we there yet? As I said, this is the vision. But are we there yet? No, not quite, but we are getting closer. The banking union has brought its members closer together; it has lowered some of the barriers that were standing in the way of a potentially seamless market. But it has not entirely removed them. While supervision has been harmonised, the regulatory framework in Europe remains somewhat fragmented. And this applies not just to minor details but also to big things. It runs counter to the idea of a single market and fosters regulatory arbitrage; and it violates the principle of same business, same risks, same rules.