Likewise, to achieve greater consistency in the regulatory framework, it has also been necessary to review the national application of the various options permitted under European regulations. European solvency regulations – namely the Directive and Regulation on capital requirements – confer some degree of discretion upon Member States and national supervisors in the implementation of specific regulatory aspects. Such aspects include the timetable for the progressive adoption of new solvency standards and the granting of exceptions in respect of compliance with certain prudential requirements. This degree of national flexibility had to be accepted at the time by European legislators in the complex Directive and Regulation negotiations. Naturally, the fact such a diversity of rules are in place hampers supervisory action and prevents the homogenous treatment of banks based on their objective position. Accordingly, in recent months, the SSM Supervisory Board has worked intensely in this field. Their efforts have seen a preliminary agreement allowing a common approach to be adopted in relation to the application of these “national options and discretions” in the hands of the supervisory authorities. The terms of this agreement are now being subjected to public consultation, a process which will finalise on 16 December.
Only with powers and plans to resolve cross-border banking groups can we arrest the risk of national regulators progressively putting up barriers to cross-border finance. A lot of progress has been made over the past few years. For most Global SIFIs it is fairly apparent whether, at least with their current structures, they are best suited to single-point-ofentry or multiple-point-of-entry resolution. Once home and key host authorities have determined a preferred resolution strategy, we need to ensure that minimum levels of goneconcern loss‑absorbing capacity are maintained in the right parts of each group; and that any necessary changes to group structure are made. Behind the scenes discussions on individual firms are underway in official-sector Crisis Management Groups or at more senior levels. Those planning discussions will need to intensify as more key jurisdictions put the necessary statutory regime in place. The crucial next step is for a EU resolution directive compliant with the FSB Key Attributes to be passed. With the stakes so high, it is the moment to press ahead. This can transform international finance for the better. BIS central bankers’ speeches  11