THE BANKING UNION – THE SOLUTION TO REDUCE THE EUROPEAN BANKING SYSTEM RISKS?

The banking union has been seen as "a panacea" for solving the system risks of the EU banking system. This paper objectives are to find out if is the banking union, with is strong and week sides, will be right answer to solve the actual issues that EU banking system has as: the fragmenta...

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Main Author: ALINA LIGIA DUMITRESCU
Format: Article
Language:English
Published: Nicolae Titulescu University 2014-11-01
Series:Global Economic Observer
Subjects:
Online Access:http://www.globeco.ro/wp-content/uploads/vol/split/vol_2_no_2/geo_2014_vol2_no2_art_006.pdf
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author ALINA LIGIA DUMITRESCU
author_facet ALINA LIGIA DUMITRESCU
author_sort ALINA LIGIA DUMITRESCU
collection DOAJ
description The banking union has been seen as "a panacea" for solving the system risks of the EU banking system. This paper objectives are to find out if is the banking union, with is strong and week sides, will be right answer to solve the actual issues that EU banking system has as: the fragmentation in the EU single market, the deterioration in asset quality, the need for recapitalization and the quality of banks’ loan portfolios. According with most of the experts the banking union will strength the process of economic integration. On the other side, the non-euro area member states are questioning about "equal rights and obligations for all Member States" inside the banking union. But, with all pros and cons of the banking union, the ECB's making decisions and tasks can be questioned, although its role of supervisor can not be disputed. The most important thing is that the banking union breaks the vicious circle between banks and sovereign debts, and ends "to big to fail"
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issn 2343-9742
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publisher Nicolae Titulescu University
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spelling doaj-art-17d781c0b1ce4d9296a1e7e7e9bf6df22025-08-20T04:02:37ZengNicolae Titulescu UniversityGlobal Economic Observer2343-97422343-97502014-11-01224247THE BANKING UNION – THE SOLUTION TO REDUCE THE EUROPEAN BANKING SYSTEM RISKS?ALINA LIGIA DUMITRESCU0Institute for World Economy, Romanian AcademyThe banking union has been seen as "a panacea" for solving the system risks of the EU banking system. This paper objectives are to find out if is the banking union, with is strong and week sides, will be right answer to solve the actual issues that EU banking system has as: the fragmentation in the EU single market, the deterioration in asset quality, the need for recapitalization and the quality of banks’ loan portfolios. According with most of the experts the banking union will strength the process of economic integration. On the other side, the non-euro area member states are questioning about "equal rights and obligations for all Member States" inside the banking union. But, with all pros and cons of the banking union, the ECB's making decisions and tasks can be questioned, although its role of supervisor can not be disputed. The most important thing is that the banking union breaks the vicious circle between banks and sovereign debts, and ends "to big to fail"http://www.globeco.ro/wp-content/uploads/vol/split/vol_2_no_2/geo_2014_vol2_no2_art_006.pdfBanking unionrisksintegrationsupervisionregulationsinstitutions
spellingShingle ALINA LIGIA DUMITRESCU
THE BANKING UNION – THE SOLUTION TO REDUCE THE EUROPEAN BANKING SYSTEM RISKS?
Global Economic Observer
Banking union
risks
integration
supervision
regulations
institutions
title THE BANKING UNION – THE SOLUTION TO REDUCE THE EUROPEAN BANKING SYSTEM RISKS?
title_full THE BANKING UNION – THE SOLUTION TO REDUCE THE EUROPEAN BANKING SYSTEM RISKS?
title_fullStr THE BANKING UNION – THE SOLUTION TO REDUCE THE EUROPEAN BANKING SYSTEM RISKS?
title_full_unstemmed THE BANKING UNION – THE SOLUTION TO REDUCE THE EUROPEAN BANKING SYSTEM RISKS?
title_short THE BANKING UNION – THE SOLUTION TO REDUCE THE EUROPEAN BANKING SYSTEM RISKS?
title_sort banking union the solution to reduce the european banking system risks
topic Banking union
risks
integration
supervision
regulations
institutions
url http://www.globeco.ro/wp-content/uploads/vol/split/vol_2_no_2/geo_2014_vol2_no2_art_006.pdf
work_keys_str_mv AT alinaligiadumitrescu thebankingunionthesolutiontoreducetheeuropeanbankingsystemrisks
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