TOWARDS THE EUROPEAN BANKING UNION-Literature review

Abstract

The financial crisis has made the need for a more integrated regulatory and supervisory framework for the financial services sector evident. An important step towards this aim is the establishment of the Single Supervisory Mechanism. European leaders have committed to moving toward a banking union, in which bank regulation and supervision, deposit guarantees, and the handling of troubled banks will be integrated across at least the euro area and possibly across the wider European Union. This paper provides an overview of research on this topic. We also identify important future research questions that emerge from both the literature and the current debate.

Keywords

• Single Supervisory Mechanism
• Banking Union
• Macro-prudential policies
• Monetary union