significant steps forward : they will make supervision swifter, more responsive and more intrusive where needed. to go further, we can and should pursue our efforts towards a more qualitative and riskfocused supervision. the forthcoming new srep methodology is a real opportunity to prioritise our supervisory tasks according to our risk assessment and incentivise further ssm banks to achieve the necessary changes to improve their risk profiles. with regard to our internal functioning, there is still room to fine - tune the articulation between vertical and horizontal supervisory activities to enhance our effectiveness, optimise our resource allocation and thereby reduce the " supervisory burden " both for banks and supervisors. as bottom - line, we need to engage even further into a constructive supervisory dialogue ; and this requires commitment on both sides of the table, we as supervisors, and banks alike. i deeply believe that we can now leverage on ssm expertise and in - depth knowledge of the european banking sector to trust our supervisory judgement, and adopt a more strategic and holistic approach to risk assessment. while benchmarking is an important input into the process, notably to ensure a level playing field, it is clearly not the only one ; the individual assessment of each bank's risk profile, based on constrained expert judgement, should remain the core of our assessment. 2 / 4 bis - central bankers'speeches ii. banking union : why and how to move forward again let me now turn to a far - reaching issue that we still need to tackle, after several years of deadlock : a fully integrated banking market in europe. let us acknowledge it : we have been very successful in building a supervision union – which we celebrate today – less so in a complete banking union. this slowness has hampered the emergence of pan - european banks, and our banks are becoming smaller compared with their global rivals. in 2023, the domestic market share of the top five us banks stood at 42 %, compared with around 28 % for the top five in europe. iii meanwhile, the most active european bank on investment banking activities ranks only ninth worldwide, far behind the top five – which are all american. euro area banks accounted for only 29 % of investment banking fees generated by the top 10 players in europe in 2023, compared with 34 % a year earlier. iv for banks – and we see this in the united states – scale is objectively a major determinant of competitiveness, particularly as it enables banks to amortise

denis beau : financial supervisory and coordination - new issues and challenges regulatory policy contribution to the panel discussion by mr denis beau, first deputy governor of the bank of france, at the salzburg global finance forum, 22 june 2021. * * * regulatory policy and supervisory coordination has always been fraught with challenges. i remember panel discussions with market participants about this very topic at the bis twenty years ago. no surprise for me that it is still a topic today, because there is a deeply rooted reason for it : the inevitable tension between market forces on the one hand, which push for a borderless financial system in many of its layers, despite step backwards, as we have seen since the global financial crisis, and on the other hand the jurisdictions in which regulators and supervisors operate, are accountable and must discharge their obligations, which at best are regional for some and most often are national. this observation does not mean that we have not made progress in addressing this tension over the last decades. nevertheless, i would differentiate between coordination issues to manage large - scale crisis and to prevent those crisis. regarding the former, i think it is fair to say that the covid - 19 pandemic acted as a test of the resilience of our global coordination framework, which has improved with a strong g20 dimension after the gfc. international organizations, among which the financial stability board, and standard setting bodies have played a very important role in gathering and disseminating information, as well as ensuring adequate coordination among major public authorities. i would also point out that monetary policy has not been the only tool we have used to increase resilience and defuse the shock. different authorities have worked hand in hand, under a lot of time pressure, including financial regulators and supervisors, to deliver a very comprehensive and largely consistent set of measures to maintain the core functions of the financial system in these unprecedented events. comprehensiveness and consistency have been key elements in our collective ability to foster resilience. so the test regarding coordination in crisis time has been passed rather well so far. however, it ’ s not over yet and good coordination should be maintained for the exit phase of support measures, generally speaking. in the field of financial regulation and supervision, there were variations in approaches, see for instance the leverage ratio for credit institutions, which was okay for the duration of the crisis, but led to divergence in the implementation of standards that should not last. getting out of the crisis and unwinding support measures will require further coordination