Banking Union
Banking Union
Context
In response to the sovereign crisis, the EU created the Banking Union in 2012 to safeguard financial stability, deliver a safer banking sector and protect the taxpayer from the cost of bank failures. The Banking Union, currently covering the 19 Eurozone countries, is also open to other EU Member States and is based on three pillars.
The first pillar is the Single Supervisory mechanism (SSM), a new system of banking supervision comprising the ECB and the national authorities, directly supervising the 115 most significant banks of the euro area (holding almost 82% of assets). The second pillar is the Single Resolution Mechanism (SRM) in charge of the resolution of failing banks with minimal costs for taxpayers and to the real economy.
The funds used for resolution are provided by the Single Resolution Fund (SRF), financed by contributions from banks and guaranteed as a last resort by a Common Backstop provided by the ESM, following an agreement reached by the Member States. In case it is used the common backstop would be repaid by the banking sector. A single rulebook applies to these two first pillars.
The third pillar is the European deposit insurance scheme (EDIS) for bank deposits in the euro area proposed by the Commission in November 2015. Building on the system of national deposit guarantee schemes (DGS), this system already ensures that all deposits up to €100 000 are protected by DGSs all over the EU. Ultimately, these national DGSs are to be fully financed by EDIS.
Eurofi documents
Extracted from the main Eurofi publications (Regulatory Updates, Views Magazines and Conference Summaries)
Eurofi policy notes
Banking fragmentation issues in the EU - September 2022
Banking fragmentation issues in the EU - September 2021
The protection of deposits in the EU : Pros and Cons and a possible way forward - April 2020
Making the Banking Union effective : what priorities ? - September 2019
Medium sized bank resolution : challenges and tools - September 2019
Banking fragmentation issues in the EU - September 2019
Addressing ring-fencing issues in the Banking Union - April 2019
Panel discussion summaries
Enhancing the EU bank crisis management framework - Stockholm High Level Seminar - April 2023
Banking Union after the June Eurogroup decisions - Prague Financial Forum - September 2022
Competitiveness of the EU banking sector - Prague Financial Forum - September 2022
Improving the EU bank crisis management framework - Ljubljana Financial Forum - September 2021
Addressing ring fencing practices in the Banking Union - Paris High Level Seminar - February 2022
Improving the EU bank crisis management framework - Lisbon Virtual Seminar - April 2021
Making the Banking Union effective - Helsinki Financial Forum - September 2019
Medium-sized bank resolution - Helsinki Financial Forum - September 2019
Addressing ring-fencing issues in the Banking Union - Bucharest High Level Seminar - April 2019
Optimising the Banking Union - Vienna Financial Forum - September 2018
Resolution of banking groups at the EU Level - Vienna Financial Forum - September 2018
Eurofi Views Magazine chapters
Banking Union & ring fencing issues
Competitiveness of the EU banking sector - April 2023
Giuseppe Sani - Banca d’Italia | José Manuel Campa - European Banking Authority (EBA) | Axel A. Weber - Center for Financial Studies (CFS) | Sébastien Raspiller - Ministry of the Economy, Finance and Industrial and Digital Sovereignty, France | Fernando Vicario - Bank of America Europe DAC | Bárbara Navarro - Public Policy & Institutional Relations - Santander | Christiana Riley - Deutsche Bank USA Corp.
Taking advantage of bank diversity in Europe - April 2023
Guiseppe Sani - Banca d’Italia | Margarita Delgado - Banco de España | Helmutt Ettl - Austrian Financial Market Authority | Marija Kolak - National Association of German Cooperative Banks (BVR) | Benoît de La Chapelle-Bizot - Groupe BPCE
Banking Union after the Eurogroup June decisions - September 2022
José Manuel Campa - European Banking Authority | Margarita Delgado - Banco de España | Steven Costers - Federal Public Service Finance - Treasury | Harald Waiglein - Ministry of Finance, Austria | Christian Castro - CaixaBank | Francesco Ceccato - Barclays Europe | Christian Edelmann - Oliver Wyman | Pier Carlo Padoan - UniCredit S.p.A
P. Donohoe - President of the Eurogroup and Minister of Finance of Ireland
Ringfencing practices in the Banking Union - February 2022
Harald Waiglein - Federal Ministry of Finance, Austria | Fernando Vicario - Bank of America Europe | Gediminas Šimkus - Bank of Lithuania | Elizabeth McCaul - European Central Bank | Peter Palus - Permanent Representation of the Slovak Republic to EU | Karl-Peter Schackmann-Fallis - Deutscher Sparkassen- und Giroverband | Gilles Briatta - Société Générale
Bank fragmentation and consolidation - September 2021
José Manuel Campa - European Banking Authority | Edouard Fernandez-Bollo - European Central Bank | Fernando Vicario - Bank of America Europe | Pier Carlo Padoan - UniCredit S.p.A. | Luigi Federico Signorini - Banca d’Italia | Christian Edelmann - Oliver Wyman
Does the Covid crisis reinforce the case for Banking Union? - September 2020
Edouard Fernandez-Bollo - European Central Bank | Dr. Eva Wimmer - Federal Ministry of Finance, Germany | Luis Garicano - European Parliament | Elke König - Single Resolution Board | Martin Merlin - European Commission | Dr. Karl-Peter Schackmann-Fallis - Deutscher Sparkassen- und Giroverband | Santiago Fernández de Lis - Banco Bilbao Vizcaya Argentaria | Diederik van Wassenaer - ING Groep
Costs and risks of not achieving the Banking Union - April 2020
Irene Tinagli - European Parliament | Markus Ferber - European Parliament | Robert Holzmann - Oesterreichische Nationalbank | Carlos da Silva Costa - Banco de Portugal | Vitas Vasiliauskas - Bank of Lithuania
Banking Union home-host dilemma - April 2020
Edouard Fernandez-Bollo - European Central Bank | Martina Drvar - Croatian National Bank | Maria Stolpe - Nordea
Resolution framework & EDIS
EU bank crisis management framework - February 2022
Edouard Fernandez-Bollo - European Central Bank | Elke König - Single Resolution Board | Helmut Ettl - Austrian Financial Market Authority | John Berrigan - European Commission | Jérôme Grivet - Crédit Agricole S.A. | Francesco Ceccato - Barclays Europe | Santiago Fernández de Lis - Banco Bilbao Vizcaya Argentaria | Johannes Rehulka - Raiffeisenbank International
EU bank crisis management framework - September 2021
Elke König - Single Resolution Board | Helmut Ettl - Austrian Financial Market Authority | Edouard Fernandez- Bollo - European Central Bank | Juan Poswick - BNP Paribas | Johannes Rehulka - Raiffeisen Bank International AG | Karl-Peter Schackmann-Fallis - Deutscher Sparkassen- und Giroverband
EU Bank crisis management framework - April 2021
Elke König - Single Resolution Board | Maria Velentza - European Commission | Helmut Ettl - Austrian Financial Market Authority | Martin Merlin - European Commission | Karl-Peter Schackmann-Fallis - Deutscher Sparkassen- und Giroverband | Jacques Beyssade - Groupe BPCE | Diederik van Wassenaer - ING Group
EDIS: is a political agreement nearer? - April 2020
Pablo Hernández de Cos - Banco de España | Jonás Fernández - European Parliament | Georg Huber - Deutscher Sparkassen- und Giroverband