Banking union (SSM)

Definition

The European Banking Union is a political vision for more EU integration with the objective to strengthen and extend the regulation of the banking sector. Its four pillars are a single rule book for financial institutions, a Single Supervisory Mechanism (SSM), a harmonised system of deposit guarantee schemes (DGS), and a Single Resolution Mechanism.

Current status

In its “Roadmap towards a Banking Union” the European Commission proposed on 12 September 2012 how to establish an SSM. A bank recovery and resolution mechanism had already been proposed on 6 June. Finally, on 2 October the High Level Expert Group on reforming the structure of the EU banking sector chaired by Erkki Liikanen published its report.

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