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The process towards centralisation of the European financial supervisory architecture: The case of the Banking Union

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  • Elisabetta Montanaro

    (Department of Business and Law, University of Siena)

Abstract

The evolution of the EU supervisory architecture has demonstrated that it took the risk of a euro break-up to just barely overcome the political resistances to centralisation by Member States and their supervisors. In the two-tier Europe that is emerging after the euro crisis, the integrity of the single market seems today crucially interlinked with the success of the banking union and its attractiveness for non-euro countries. The banking union’s design, without a credible common fiscal backstop, remains however a partial solution to the financial stability issues arising from the fragmentation of the EU financial market in the event of banking crises. The analysis performed on non-euro countries’ assessments of the pros and cons of joining the banking union aims to show that until fiscal responsibility for financial stability remains at the national level, regulatory centralisation cannot sever the traditional divide between home and host supervisors.

Suggested Citation

  • Elisabetta Montanaro, 2016. "The process towards centralisation of the European financial supervisory architecture: The case of the Banking Union," PSL Quarterly Review, Economia civile, vol. 69(277), pages 135-172.
    • Handle: RePEc:psl:pslqrr:2016:22
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    File URL: http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/13696/13481
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    References listed on IDEAS

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    2. Dóra Piroska & Yuliya Gorelkina & Juliet Johnson, 2021. "Macroprudential Policy on an Uneven Playing Field: Supranational Regulation and Domestic Politics in the EU's Dependent Market Economies," Journal of Common Market Studies, Wiley Blackwell, vol. 59(3), pages 497-517, May.
    3. Mérő, Katalin, 2019. "Érdemes-e csatlakozniuk az európai bankunióhoz az euróövezeten kívüli tagállamoknak? [Is it worth non-euro member-states joining the European Banking Union?]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 497-520.
    4. Elisabetta Montanaro, 2016. "Central Banks And Financial Supervision; New Tendencies," Working papers wpaper134, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    5. Huizinga, Harry, 2018. "The Supervisory Approach to Anti-Money Laundering: An Analysis of the Joint Working Group’s Reflection Paper," Other publications TiSEM 1bb0eb51-d44b-46ab-87ae-6, Tilburg University, School of Economics and Management.

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    More about this item

    Keywords

    EU financial supervision; banking union; non-euro countries; CEE countries; cross-border banking;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G01 - Financial Economics - - General - - - Financial Crises
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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