New eBook: Beyond the Pandemic: Reviving Europe’s Banking Union
Beyond the Pandemic: Reviving Europe’s Banking Union:
In the latest CEPR eBook, Ignazio Angeloni reviews the European Banking Union to date and proposes policy measures to improve its performance.
The European Banking Union, launched in 2012, at the peak of the Euro Crisis, was designed to reinforce the institutional architecture of the euro by transferring large parts of the banking regulatory and supervisory framework from national domain to the euro area.
Both the euro itself and the euro area’s banking industry have now been sorely tested by the Covid-19 pandemic and resultant economic crisis and this CEPR report by Ignazio Angeloni seeks to provide a comprehensive review of the banking union’s performance to date, in light of the current unprecedented situation.
Angeloni, who served as head of financial stability in the ECB in 2012-13, and coordinated the preparations for the single supervisory mechanism, concludes that, although the banking union has brought about major improvements in the European bank regulatory framework and helped strengthen the banking sector significantly, its overall performance after five years of operation falls short of what was initially foreseen and desired. Reform is needed to reinvigorate the project and improve its performance.