A Contribution from the Chair and Vice-Chairs of the Advisory Scientific Committee to the Discussion on the European Commission's Banking Union Proposals

Abstract

A European banking union is necessary to ensure the stability of the European financial system. This paper assesses the EU Commission's proposals for legislation to create a banking union in Europe. The EU Commission's proposal for a regulation creating a single supervisory mechanism is strongly supported. At the same time, a European resolution authority is essential for the credibility of the single supervisory mechanism. JEL Classification: G28