
It is clear that a banking union at the European level is a gain, but it is not a solution for all the problems that have been revealed by the last financial crisis. Although the Single Rulebook uniforms banks’ risks management and micro-prudential supervision, the macro-prudential components contained are reduced and academically challenged. The question of Member States outside the Eurozone on the participation within the Single Supervisory Mechanism is when is the right moment and not if, since there is an implicit horizon for joining the Eurozone and thus to the mechanism. For these Member States, where the banking system is dominated by banking groups supervised by the European Central Bank, entering into a close cooperation with the Single Supervisory Mechanism does not appear to be a necessity, given that national supervision authorities are applying the Single Rulebook, and cooperation between national authorities and the European Central Bank is clearly established.
The Need for a Banking Union (617.2 KiB, 1,772 hits)