Tag: eu banking union

European Banking Union Explained

European Banking Union Explained

Financial Markets Explained
The much talked about European Banking Union proposals has been making news on and off. For a complex set up such as the European Union which is comprised of various sovereign countries, in this article we explain the basics of the European Banking Union, the purpose of setting up the banking union and its far reaching implications on the Eurozone member countries. If one has to summarize the EU Banking Union proposal, it can be said that the idea is to break the vicious circle between the banking systems and their respective governments in order to create buffers of financial 'safety nets' to avoid a repeat of the financial crisis. European Banking Union - Brief History & Context The idea of establishing a common banking union across the Eurozone was highlighted after the Eurozone f...
What is the EU Banking Reforms all about

What is the EU Banking Reforms all about

Financial Markets Explained
The EU banking reforms has been one of the highly discussed topics in recent months and gained even more prominence as the Eurozone countries seem to be split on the issue. In this article, we discuss what is the EU banking reforms and the proposed changes to the banking sector in the Eurozone. The EU Banking reforms, is a loosely coined term for what is known as the Single Supervisory Mechanism. The financial crisis in Eurozone has brought to light many cracks within the banking sector in the region which set the stage for the proposed reforms with an aim to create uniformity in the banking sector in Eurozone. The Single Supervisory Mechanism or SSM for short is being proposed, where in the European Central Bank (the ECB) will assume ultimate supervisory responsibilities for t