Accomplishment of Banking Union in 2014. The Stage of the Three Pillars

Asset quality analysis and stress tests were prior activities before beginning effective supervision of large EU banks starting with November, 2014 within the banking union of EU. In this article I propose four major objectives. Firstly, I review the results of stress tests conducted by the European Central Bank (ECB) with the assistance of the European Banking Authority, this representing the beginning of a complex process for building a strong banking union. Secondly, I highlight the results of stress test exercises conducted by ECB and National Bank of Romania (NBR) in the domestic banking sector. Thirdly, based on the directives and regulations already adopted, I explain the three pillars of the banking union: single supervisory mechanism, single resolution mechanism and harmonization of national deposit insurance systems. Finally, I emphasize that our country is already on the way of entering the banking union, which is supported by the NBR and the Romanian Banking Association (RBA), given the high degree of integration of Romanian banking sector into the European one and the prospects for adopting the single currency, the euro.