The Banking Union: An Overview and Open Issues

This chapter documents cross-border banking trends in the European Union (EU). Importantly, it finds that cross-border banking is not only pervasive in the Eurozone, but also in the non-Eurozone member states of the EU. The latter may wish to join the Banking Union at a later stage. The section “ The Rationale for Banking Union ” is followed by “Cross-border Banking”. The next section, “ An Integrated Framework ”, analyses what the new governance framework of the Banking Union is about. We stress that the Banking Union should be seen as an integrated framework. The section “How Does the Banking Union Work?” explains the completed building blocks of Banking Union, in particular single supervision and single resolution. Next, “ Completing the Banking Union ” discusses which building blocks are not yet completed, notably European Deposit Insurance. The final section concludes. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.