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However, more centralized supervision encourages banks to integrate more cross-border.
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"The priority is given to the banking integration and, in the bank integration, I think we can reach, sooner than in other matters, an agreement on a more centralized and more common supervision," Mr. Van Rompuy said in a news conference in Mexico before of the Group of 20 meeting, according to a report from Reuters.
Finally, under centralized supervision, only the central supervisor collects information and decides on the liquidation of the bank.
The model of hierarchical supervision is compared in terms of welfare with two alternative arrangements, namely decentralized supervision, where the local supervisor is fully in charge, and centralized supervision, where the central supervisor is fully in charge.
This hierarchical model is contrasted with the alternatives of decentralized and centralized supervision, where only the local or the central supervisor collects information and decides on liquidation.
This setup may be interpreted as a model of decentralized supervision in which supervisory responsibilities are allocated to a local supervisor or a model of centralized supervision in which supervisory responsibilities are allocated to a central supervisor.
We could become a more centralized state, like France.
That contrasted with more centralized drug manufacturing operations in past years.
Hamilton was in favor of more centralized government.
He thought with a more centralized, stronger legislature.
"I have a much more centralized approach," he said.
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