Affiliation:
1. ESG Management School, France
Abstract
In 2012, the European Commission created a roadmap towards a European Banking Union. The aim of this EBU is to ensure financial stability in Europe. The proposed framework by the European Commission is based on three pillars: a Single Supervisory Mechanism (SSM), a Single Resolution Mechanism (SRM), and a single deposit guarantee mechanism. The EBU project is a step towards a better functioning EMU in the future. However, there are several controversies on this project. The main concerns are conflicts of interest between monetary policy and banking supervision, and cooperation between ECB and other banking authorities. If the EBU is a necessary step, it is not a sufficient one to resolve all financial issues in the EMU and in Europe.