Chapter

The Banking Union Revisited

Authors:
To read the full-text of this research, you can request a copy directly from the author.

Abstract

This chapter gives an account of the implementation of banking union in Europe. The expected benefits from a banking union are reviewed. Then the author analyses and discusses its components with a special focus on the supervision and resolution of banks. The challenges are both functional and institutional, involving micro- and macroprudential considerations. As regards the European Central Bank (ECB), will there be possible conflicts of objectives when it cumulates its monetary policy function with its new supervisory role? For banking supervision, how can the division of labour between the ECB and the national competent authorities (NCAs) be combined with the necessary coordination between them? The same kind of challenge applies to resolution and deposit insurance. The chapter also relates the launching of the banking union to other structural issues, such as the separation of bank activities and the financing of the real economy (investment and growth) in the new regulatory framework. At the end it touches upon the Capital Markets Union (CMU) project.

No full-text available

Request Full-text Paper PDF

To read the full-text of this research,
you can request a copy directly from the author.

Chapter
The European Banking Union as the second key part in creating a Financial Union is a centerpiece for the Economic and Monetary Union. Following a general introduction, the Chapter explains the need for a banking union and orderly resolution for failing banks, before discussing the European Banking Union’s design, the progress in its creation and obstacles to its finalization. The Chapter concludes with a critique of Banking Union, what it fails to address, how it is linked to Capital Markets Union, shadow banking, and securitization, and how its flaws strengthen finance-led capitalism.
Article
Full-text available
The SDN elaborates the case for, and the design of, a banking union for the euro area. It discusses the benefits and costs of a banking union, presents a steady state view of the banking union, elaborates difficult transition issues, and briefly discusses broader EU issues. As such, it assesses current plans and provides advice. It is accompanied by three background technical notes that analyze in depth the various elements of the banking union: a single supervisory framework; a single resolution and common safety net; and urgent issues related to repair of weak banks in Europe.
Article
The financial trilemma states that financial stability, financial integration and national financial policies are incompatible. Any two of the three objectives can be combined but not all three; one has to give. This paper develops a model to underpin the financial trilemma.
Should the “outs” join the European banking union?
  • R Hüttl
  • D Schoenmaker
Duisenberg School of Finance - Tinbergen Institute discussion papers no
  • D Schoenmaker
The public and the private banking union
  • J Asmussen
European deposit insurance: A response to Ludger Schuknecht. bruegel.org blog
  • N Véron
Joint Research Centre (European Commission) and college of
  • C De Boissieu
SYMBOL model database and analyses for public finance sustainability
  • A Pagano
  • J Cariboni
  • P Giudici
Global systemically important banks: Updated assessment methodology and the higher loss absorbency requirement
  • Bcbs
List of supervised entities as of 1
  • Ecb