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26 - The Banking Union

Supervision and Crisis Management

from Part IV - Financial Integration

Published online by Cambridge University Press:  28 September 2023

By
Willem Pieter de Groen
Edited by
Dariusz Adamski ,
Fabian Amtenbrink  and
Jakob de Haan
Dariusz Adamski
Affiliation:
University of Wroclaw
Fabian Amtenbrink
Affiliation:
Erasmus Universiteit Rotterdam
Jakob de Haan
Affiliation:
University of Groningen
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Summary

The European Banking Union (EBU) has been a major breakthrough in the European integration process, with the introduction of a single supervisory mechanism, single resolution mechanism, and revision of the deposit guarantee schemes. The EBU has undoubtedly contributed to the strengthening of the supervisory framework, but there remain important legal, economic, political, and operational challenges. This chapter focuses on two serious flaws in the current EBU and potential solutions. First, the lack of a jointly backed deposit guarantee scheme. Second, the inability to effectively use and finance the resolution fund and the absence of an effective liquidity facility.

Type
Chapter
Information
The Cambridge Handbook of European Monetary, Economic and Financial Integration , pp. 478 - 497
Publisher: Cambridge University Press
Print publication year: 2023

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