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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.

Contributions to the policy debate

Extracted from the main Eurofi publications (Regulatory Updates, Views Magazines and Conference Summaries)

Key Eurofi
documents

Public and private
sector views

Banking Union & ring fencing issues

Banking Union after the Eurogroup June decisions - September 2022 new

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

Completing the Banking Union will be key to drive economic growth and fund the twin transitions - February 2022

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