IDEAS home Printed from https://ideas.repec.org/a/vrs/ecothe/v55y2017i1p25-38n2.html
   My bibliography  Save this article

The First Steps Toward the Banking Union’s Implementation and Effects on the Eurozone Banking Sector

Author

Listed:
  • Kirova Silvia

    (University of National and World Economy, Sofia, Bulgaria)

Abstract

The banking union in Europe was proposed in 2012 as one of the key measures to address the structural weaknesses of the Economic and Monetary Union. It was introduced at a time of a serious regulatory overhaul of the financial sector in all developed parts of the world. Now that its implementation has started with the launch of the Single Supervisory Mechanism and the start of the Single Resolution Mechanism it is time to review what is the state of play of the elements of the banking union and to analyse the effects of its implementation on the Eurozone banking sector. The paper looks at each one of the pillars of the banking union. Then the author analyses the current state of the Eurozone banking sector and tries to identify how the introduction of the banking union has influenced on the developments within that sector. The paper argues that the Eurozone’s banking sector has become more stable, better capitalised and its risks more controlled than in 2008 but this is at the expense of profitability. The Eurozone banking sector continues to exhibit a high level of non-performing loans. In part, this can be attributed to the banking union and the challenges it poses to the banking sector.

Suggested Citation

  • Kirova Silvia, 2017. "The First Steps Toward the Banking Union’s Implementation and Effects on the Eurozone Banking Sector," Economic Themes, Sciendo, vol. 55(1), pages 25-38, March.
    • Handle: RePEc:vrs:ecothe:v:55:y:2017:i:1:p:25-38:n:2
    DOI: 10.1515/ethemes-2017-0002
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/ethemes-2017-0002
    Download Restriction: no
    File URL: https://libkey.io/10.1515/ethemes-2017-0002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Franziska Bremus & Claudia Lambert, 2014. "Banking Union and Bank Regulation: Banking Sector Stability in Europe," DIW Economic Bulletin, DIW Berlin, German Institute for Economic Research, vol. 4(9), pages 29-39.
    2. Hadjiemmanuil, Christos, 2015. "Bank resolution financing in the banking union," LSE Research Online Documents on Economics 61588, London School of Economics and Political Science, LSE Library.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dejan Šoškić, 2015. "Global Financial Reform Since 2008: Achievements and Shortcomings," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 62(3), pages 385-400, June.
    2. Moritz Rehm, 2021. "Tug of War over Financial Assistance: Which Way Forward for Eurozone Stability Mechanisms?," Politics and Governance, Cogitatio Press, vol. 9(2), pages 173-184.
    3. Haufler, Andreas, 2021. "Regulatory and bailout decisions in a banking union," Journal of Banking & Finance, Elsevier, vol. 133(C).
    4. Velliscig, Giulio & Floreani, Josanco & Polato, Maurizio, 2022. "How do bail-in amendments in Directive (EU) 2017/2399 affect the subordinated bond yields of EU G-SIBs?," Journal of Empirical Finance, Elsevier, vol. 68(C), pages 173-189.
    5. Ioannis G. Asimakopoulos, 2018. "International law as a negotiation tool in Banking Union; the case of the Single Resolution Fund," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 21(2), pages 118-131, April.
    6. Giuliana, Raffaele, 2022. "Fluctuating bail-in expectations and effects on market discipline, risk-taking and cost of capital," ESRB Working Paper Series 133, European Systemic Risk Board.
    7. 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.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:ecothe:v:55:y:2017:i:1:p:25-38:n:2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.