Macroprudential aspects of the Banking Union

Abstract

The present document addresses the main macroprudential aspects of the Banking Union, that arose as a reply to the European sovereign debt crisis. After the Great Recession, at international level, a certain consensus was reached regarding the necessity to set out and implement this kind of macroprudential regulation to achieve a robust financial sector. Because of this, from this perspective, each of the fundamental pillars of the Banking Union is analysed, just as its single rulebook, to check if it is in existence and, in this case, if it is sufficient. Equally, some financial indicators are studied to check if regulatory changes are reflected in the data, in the full knowledge that the new mechanism has been in place for a short time. Finally, some ideas and proposals are suggested to improve several macroprudential elements of the Banking Union.

Keywords

• macroprudential regulation
• financial system
• banking union