• Table of Contents
    • Abstract
    • Keywords
    • Article
      • European banking union
      • Background to financial supervision in Europe
      • The European ‘doom loop’
      • Why a banking union for Europe?
      • Legal underpinning
      • Progress towards achieving a banking union
        • Common bank supervision
      • The Single Resolution Mechanism
      • Banking union and fiscal backstops
      • Safety nets
      • Managing ‘the outs’
      • Final remarks
      • Acknowledgements
    • See Also
    • Bibliography
    • How to cite this article

European banking union

Corrado Macchiarelli
From The New Palgrave Dictionary of Economics, Online Edition, 2016
Edited by Steven N. Durlauf and Lawrence E. Blume
Back to top


The sovereign crisis that has characterised the eurozone since 2010 has highlighted the potentially vicious circle between banks and sovereigns, adding an extra dimension to the 2007/08 financial crisis. This is why the EU heads of state and government committed to a European banking union in June 2012; a vision that was further developed in the European Commission's blueprint. The aim of the banking union is to ensure that the financial institutions of the – for now – 19 member states will be subject to a single supervision, a single resolution and a common deposit insurance system. This article explains the background to these initiatives and weighs the progress towards their completion.
Back to top


Back to top


Back to top

How to cite this article

Macchiarelli, Corrado. "European banking union." The New Palgrave Dictionary of Economics. Online Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2016. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 24 November 2017 <http://www.dictionaryofeconomics.com/article?id=pde2016_E000344> doi:10.1057/9780230226203.3966

Download Citation:

as RIS | as text | as CSV | as BibTex