you're reading...
Economic and Social Policies, PUBLICATIONS

A first step towards banking union


Copyright Lim Yong Hian. Used under
licence from

Banking union is one offour building blocks for creating genuine economic and monetary union identified by European Council President, Herman van Rompuy. Such a union would aim to break the negative feedback loop between sovereign debt and the health of the banking system.

As a first step, the European Commission proposed in September 2012 to confer supervisory authority for all eurozone banks on the European Central Bank. A second proposal includes a set of modifications to enable the European Banking Authority to continue its mission under the new supervision framework.

Political leaders and economists are now examining the proposals’ feasibility and operational challenges. If a single supervisory mechanism is to be established, questions need to be answered on which banks will be covered, its geographical reach, sharing of responsibilities amongst different supervisors and the lack of common deposit guarantee and resolution mechanisms. Discussions are also ongoing on possible recapitalisations of troubled banks through the European Stability Mechanism and the exact timeline to be followed for all these measures.

Click here to read the complete briefing



  1. Pingback: The week on the EP Library’s blog: Eclecticism! « Library of the European Parliament - November 16, 2012

Leave a Reply

Download the EPRS App

EPRS App on Google Play
EPRS App on App Store
What Europe Does For You
EU Legislation in Progress
Topical Digests
EPRS Podcasts

Follow Blog via Email

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 3,539 other subscribers

Disclaimer and Copyright statement

The content of all documents (and articles) contained in this blog is the sole responsibility of the author and any opinions expressed therein do not necessarily represent the official position of the European Parliament. It is addressed to the Members and staff of the EP for their parliamentary work. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the European Parliament is given prior notice and sent a copy.

For a comprehensive description of our cookie and data protection policies, please visit Terms and Conditions page.

Copyright © European Union, 2014-2019. All rights reserved.

%d bloggers like this: