DOI: https://doi.org/10.52903/wp2022303
BANKING UNION:
STATE OF PLAY AND PROPOSALS FOR THE WAY FORWARD
Kornilia Vikelidou
Aristotle University of Thessaloniki
Athanasios Tagkalakis
University of Patras
Abstract
This paper examines the current state of play of the Banking Union project aiming at unveiling the weaknesses and gaps of this still incomplete framework. In this context, the implementation so far of the Banking Union legislation sheds light on the vulnerabilities concerning supervisory change, transparency, trust and a proper allocation of bank failure costs since all these criteria are deemed as essential contributing factors to promoting financial stability at European level. Taking into consideration the latest steps towards completing the Banking Union framework until June 2022, this paper aims at depicting the proposed leeway potentially capable to align resilience and flexibility with the view of mitigating any persisting shock-amplifying factor against financial stability.
Keywords: Banking Union, Single Supervisory Mechanism, Single Resolution Mechanism, European Deposit Insurance Scheme.
JEL-classification: G21, G28, O52, E42, F33, F42
Acknowledgements: We would like to thank Hiona Balfousia, Dimitris Malliaropoulos, Ioannis Papadopoulos, Despina Anagnostopoulou, Iosif Ktenidis, Apostolos Kiohos, Symeon Papadopoulos, Stefanos Papadamos. Last but not least, we thank the anonymous reviewers of the Bank of Greece’s Working Papers Series for their insightful comments and suggestions. This research was conducted while Athanasios Tagkalakis was on temporary leave from the Bank of Greece. The views expressed in this paper are those of the authors alone and do not necessarily reflect those of the Bank of Greece. All remaining errors are ours.
Correspondence:
Athanasios Tagkalakis
Department of Economics
University of Patras - Rio Campus, 26504
Patras, Greece
Tel.:+30- 2610997701
email: atagkala@upatras.gr