"EU legal framework". – The Financial Union consists of a Banking Union and a Capital Markets Union. – With the aim of setting out the details of Financial Union, the Commission submitted: - in September [...] ECONOMIC AND MONETARY UNION 2: FINANCIAL UNION cepPolicyBrief No. 2015-21 CONTENT Title Report of 22 June 2015 Completing Europe's Economic and Monetary Union, submitted by Jean-Claude [...] and Monetary Union Brief Summary ► Context and Objective – In the Five Presidents' Report of June 2015, the Presidents propose the creation of four Unions: - an Economic Union (see cepPolicyBrief)
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Formally, the Banking Union is enshrined in EU-law. In practice, however, the Banking Union is a Eurozone project. Although non-Eurozone Member States may participate in the Banking Union on a voluntary [...] Economic and Monetary Union, 22 October 2015. 4 Similar to the other elements of the Banking Union, this scheme would be open to non-Eurozone Member States join- ing the Banking Union. 5 Cf. Bundesta [...] Deposit Guarantee Scheme for the Eurozone? 1 Introduction – The Banking Union’s Missing Pillar The Eurozone’s Banking Union1 is regularly described as a three pillar system, consisting of: •
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vision for economic and fiscal integration, for a banking union to restore confidence in banks and in the euro. One of the key elements of the banking union should be a Single Supervisory Mechanism (SSM) [...] fails to keep up with integrated banking markets. Supervisory failings have, since the onset of the banking crisis, significantly eroded confidence in the EU banking sector and contributed to an aggravation [...] the Functioning of the European Union (TFEU). (2) The provision for a single supervisory mechanism is the first step towards the creation of a European banking union, underpinned by a true single rulebook
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the instrument fits in the banking union’s setup (starting 2016). We propose to further develop the ESM as a backstop for major recapitalisations in the banking union and set out the necessary conditions [...] As of 2016: Is This the Banking Union’s Fiscal Backstop? Starting 2016, any ESM direct recapitalisation cannot be seen isolated from the then active European regime on banking recovery and resolution [...] SRM-Regulation 6 cepInput The ESMs direct banking recapitalisation: Looking forward in backstop-questions Most likely backstops within the banking union framework Note: The options in bold are already
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and objectives – The Regulation is part of the “Banking Union”, which has been planned at EU level (cf. Communication Roadmap for a Banking Union (COM(2012) 510). – The Regulation assigns prudential [...] in banking supervision could damage the ECB’s reputation. The ECB has no experience whatsoever in banking supervision. (3) A strict separation within the ECB between monetary policy and banking supervision [...] contains all the key competences of a banking supervision authority and is thus the same as full banking supervision. Subsidiarity Unproblematic. The EU banking sector is integrated to the extent that
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the banking union should also be open to the participation of other Member States. (10) As a first step towards the banking union, a single supervisory mechanism should ensure that the Union's policy [...] vision for economic and fiscal integration, for a banking union to restore confidence in banks and in the euro. One of the key elements of the banking union should be a Single Supervisory Mechanism (SSM) [...] therefore, by reason of the pan-Union structure of the banking market and the impact of bank failures on other Member States, be better achieved at the Union level, the Union may adopt measures, in accordance
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on shadow banking, adopted by the Commission on 19 March 2012, reinforcing banking regulation could drive a substantial part of banking activities beyond the boundaries of traditional banking and towards [...] the Union banking sector in October 2012. It discussed among other things the interaction between the traditional and the shadow banking systems. The report recognised the risks of shadow banking activities [...] The progress made on the establishment of the Banking Union is also decisive in this context. The proposal regarding structural reforms of the EU banking sector, which is presented in a package with
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Supervisory Mechanism (SSM) is the first pillar of the EU Banking Union. SSM ensures the soundness of the banking sector and aims at consistent banking supervision in the participating countries. It comprises [...] countries. This facilitates close cooperation with the other pillars of the EU Banking Union – regulation by the European Banking Authority EBA as well as guidance and help for troubled banks by the Single [...] Keynote »Differentiation and Convergence of Supervision in the European Banking Union« Prof. Dr. Dr. h.c. Günter Franke I Chairman of the
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financial crisis, the European Union ("Union") and its Member States have engaged in a fundamental overhaul of financial regulation and supervision. In the area of banking, the Union has initiated a number [...] whole. However, the Union banking sector remains large in absolute (EUR42.9 trillion) and relative terms (nearly 350 per cent of Union GDP). The individual size of the largest Union banks by assets is [...] between the sovereign and banking risks and to restore confidence in the euro and the banking system, the European Commission has called for further development of a Banking Union, building on the single
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