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The logic of a banking union for Europe


  • Patrick Leblond


In the wake of a sovereign debt crisis, which was itself preceded by a banking crisis, the European Union (EU) is in the process of creating a banking union for the euro area. Such an integrated financial framework is considered necessary for completing Europe’s economic and monetary union. Why? Is a banking union for the euro area (and the EU more broadly) really necessary? This article argues that a banking union in Europe may not be necessary for the euro’s survival and functioning but it is likely to help reduce inherent tensions in the system. Without an effective banking union, financial integration is costlier and it puts all the pressure for financial stability on the European Central Bank’s shoulders.

Suggested Citation

  • Patrick Leblond, 2014. "The logic of a banking union for Europe," Journal of Banking Regulation, Palgrave Macmillan, vol. 15(3-4), pages 288-298, September.
  • Handle: RePEc:pal:jbkreg:v:15:y:2014:i:3-4:p:288-298

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    Cited by:

    1. Elena Seghezza, 2016. "L’attribuzione della vigilanza bancaria alla BCE: un approccio di political economy," ECONOMIA E DIRITTO DEL TERZIARIO, FrancoAngeli Editore, vol. 2016(3), pages 423-438.
    2. María Cantero Sáiz & Sergio Sanfilippo Azofra & Begoña Torre Olmo, 2019. "The single supervision mechanism and contagion between bank and sovereign risk," Journal of Regulatory Economics, Springer, vol. 55(1), pages 67-106, February.
    3. Lucia Quaglia & Aneta Spendzharova, 2017. "The Conundrum of Solving ‘Too Big to Fail’ in the European Union: Supranationalization at Different Speeds," Journal of Common Market Studies, Wiley Blackwell, vol. 55(5), pages 1110-1126, September.

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