Explain why in recent years European banks turned their focus back to their national markets. Outline the potential risks associated with this process. 

Q2: Explain how the securitization technique can be used by international banks to manage their credit risk.

Q3: What is stress testing? Why has it become more important for international banks in recent years? Support your answer with an example of a recent stress testing exercise.

Q4: Comment on the latest developments in the creation of the European Banking Union.