From ACT Wiki
European Union (EU) bank supervision.
The banking union is the arrangement in the Euro zone under which the European Central Bank (ECB) regulates the financial stability of banks through its Single Supervisory Mechanism (SSM).
- Banking union depends on fiscal union
- "In 2012 the eurozone agreed to create a banking union. Big banks would be supervised by a central authority, rather than by national regulators. There would be a single standard approach to resolving failing banks, which would - by imposing losses on private-sector creditors - limit the cost for governments.
- The eurozone also embarked on an ambitious programme to harmonise capital markets and reduce dependency on banks.
- But both the banking and capital markets union depend on fiscal union - and that remains incomplete and contentious."
- The Treasurer magazine, Cash Management Edition April 2019 p22, Frances Coppola, economics and finance commentator and speaker.