Lorenzo Bini Smaghi, an executive board member at the European Central Bank, has suggested reducing the degree of discretion used by national regulators and adopting a more integrated European prudential supervison framework to better manage bank resolution regimes.

In an opinion piece published in the Financial Times on Wednesday, Bini Smaghi said when power to decide whether a banking crisis is systemic or not is in the hands of national authorities, there is often an incentive to