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Supervision of internationally active banks has become a key policy issue after the financial crisis, both within Europe and even across continents. Despite liberalization and economic union the remaining frictions in the increasingly integrated banking markets seem key to financial crises and financial instability. The crisis of 2007/8 provides quite a number of examples for faulty business models of cross-border banks and drastic failures of cooperation between national supervisors and, hence, provides the basis for this renewed debate. In my lecture I would like to concentrate on the European experience and try to draw some more general lessons that may also be of a wider interest for other areas with increasing economic integration.