European Banking Union

banking union

Fragile Banking Union: Many International Banks, Very Few Pan-European

The volume of  M&A in the European banking sector has gone from 39 billion euros in 2008 to scarcely 9.5 billion in 2015. And in the first half of last year, it was little over 1 billion euros. Why has there not been more consolidation in the sector? It’s an important question for the European authorities who want to promote banking union to answer.

European Union

EMU banking : well-behaved vs rogue systems?

MADRID | By Luis Martí | The European banking union project received a remarkable boost last December, even if a major chapter, the bank resolution fund, had to conform to German requirements and stay on a national basis. This part of the agreement is a moot point, and Southern countries should have raised their voices and taken a firm stand against, as Münchau also wrote, no matter the delay inflicted to the working agenda of the eurogroup.

European Banking Union

European Banking Union, Arcadia Felix

MADRID | By Raimundo Poveda | With the typical delays of the first willful calendars, the European Community Resolution that regulates a common supervisor for the euro zone and guests (SSM, single supervisory mechanism) was finally published. Press and politicians are announcing the Banking Union, a new name for an invention of limited scope. We already had a common banking market since 1989, and a European Banking Authority since 2011. The Banking Union will turn back the financial Balkanization process triggered by the crisis. So entities will get abundant credit at unified interest rates, just as during the bubble; SMEs in the South will pay for credit the same as German SMEs; and there will be credit! We will go back to the Arcadia Felix of the first five years of the century. True? Well, maybe not.

European Banking Union

Why European Banking Union May Fail (Varoufakis)

MADRID | By Luis Arroyo | Yanis Varoufakis is the most critical economist regarding the institutional failures of the monetary union. He considers that the European Banking Union will only benefit EU Northern countries, and adds that the basic principles of the euro zone have not been entirely followed.