Перспективи и предизвикателства пред създаването на банков съюз в ЕС
Perspectives and Challenges for the Establishment of a Banking Union in the EU

Author(s): Kaloyan Simeonov
Subject(s): Economy, Supranational / Global Economy, Financial Markets
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: Banking Union; Regulation; Crisis; Euro Area; Reform
Summary/Abstract: After the beginning of the last economic and financial crisis that started in the period 2007-2008 and is continuing to affect the global and the EU financial markets, the European Union has initiated series of regulatory reforms in order to overcome the effects of the crisis and to attempt to prevent future similar crisis. One of these reforms is the establishment of the Banking Union predominantly in the Euro area. The establishment of the Banking Union has many advantages and perspectives in relation to the EU integration process in the banking area. It aims to foster the stability in the EU banking system, to restore the investor and the consumer confidence that were weakened by the recent crisis, to complete the EU rules that were adopted and implemented so far for the performing of banking services within the Union. However, the project for reforms through creation of a Banking Union is not without some serious challenges. Some of the most important challenges are related to the scope of the new reform as the Banking Union will not cover all the EU Member States which may jeopardise the smooth functioning of the EU Single Market on banking services. Other challenges are the timing, the legal and institutional framework. Last but not least, the Banking Union will soon face the challenge to become not only "too big to fail" but also "too dangerous to fail". Notwithstanding the fact that it is not expected Bulgaria to join soon the Banking Union by joining the Euro area or through the so called "close cooperation", the creation of the Banking Union will also have an influence on it.

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