Part II The New European Supervisory Architecture, 6 A European Framework for Macro-Prudential Oversight

6.01 From a supervisory perspective, the main issue raised in the wake of the recent financial crisis was the question as to how the risk accumulating in the financial system and shortcomings with a systemic effect could go undetected for such a long time.1 In 2009 the de Larosière-Report provided an explanation by noting that despite the progress made in financial innovation and integration across borders, the supervisory framework had remained limited by its regional and national focus. This narrow focus solely on the activities of individual firms, as employed...