The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

European Banking Union

  • Corrado Macchiarelli
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_3043

Abstract

The sovereign crisis that has characterised the eurozone since 2010 has highlighted the potentially vicious circle between banks and sovereigns, adding an extra dimension to the 2007/08 financial crisis. This is why the EU heads of state and government committed to a European banking union in June 2012; a vision that was further developed in the European Commission’s blueprint. The aim of the banking union is to ensure that the financial institutions of the – for now – 19 member states will be subject to a single supervision, a single resolution and a common deposit insurance system. This article explains the background to these initiatives and weighs the progress towards their completion.

Keywords

Banking crisis Bank resolution Bank supervision Economic and monetary union European Union European deposit guarantee Financial crisis Financial integration 

JEL Classifications

G01 G18 G28 O52 E61 
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Notes

Acknowledgments

The author wishes to thank, without implicating, Iain Begg for his constructive comments on this entry.

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  1. 1.