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European Banking Union: state of play and proposals for the way forward

Author

Listed:
  • Kornilia Vikelidou

    (Aristotle University of Thessaloniki)

  • Athanasios Tagkalakis

    (University of Patras
    Bank of Greece
    Hellenic Parliamentary Budget Office)

Abstract

On 29 June 2012, the Heads of State and Government adopted a reform agenda to address the inadequacy of the European Union (EU) regulatory framework to meet the significant threats to financial stability across the Economic and Monetary Union (EMU). In this context, they agreed on the European Banking Union (EBU) project allowing for centralised application of EU-wide rules for banks based on single (i.e. federal-type) mechanisms. Taking into consideration the implementation of the European Banking Union framework until December 2022, along with the weaknesses and gaps of this still incomplete regime, we highlight the main issues of the proposed leeway towards completing the EBU framework. Against this background, the objective of this paper is to answer why the EBU has not been completed after 10 years along with highlighting the reasons that render imperative its completion. To this end, the qualitative research method has been deployed to unveil through the existing literature, the causes of the still incomplete Banking Union and the interrelation of the factors that mirror the background of the Banking Union framework in parallel with the reality related to its establishment so far. The resulting conclusions constitute the further aim of this paper to cast the spotlight on the scope of factors potentially capable to meet the EBU’s target as regards mitigating persisting shock-amplifying factors against financial stability.

Suggested Citation

  • Kornilia Vikelidou & Athanasios Tagkalakis, 2023. "European Banking Union: state of play and proposals for the way forward," SN Business & Economics, Springer, vol. 3(8), pages 1-11, August.
    • Handle: RePEc:spr:snbeco:v:3:y:2023:i:8:d:10.1007_s43546-023-00525-1
    DOI: 10.1007/s43546-023-00525-1
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Banking Union; Single Supervisory Mechanism; Single Resolution Mechanism; European Deposit Insurance Scheme;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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