Qu'est-ce que l'Union bancaire ? | Banque de France
What is the Banking Union?
Overview of Banking and Its Importance
- Banks are essential to the economy, providing payment methods, collecting savings, and granting loans. They are closely monitored to ensure financial stability.
Establishment of the Banking Union
- The Banking Union was created in 2014 to restore trust in the banking sector following the crises of 2008 and sovereign debt issues, aiming to eliminate taxpayer-funded bank bailouts.
Objectives of the Banking Union
- The union aims to regulate and supervise banks, prevent banking crises, manage their consequences, and protect customer deposits. It operates on three main pillars:
- Single Supervisory Mechanism (SSM): Oversees major European banks through collaboration between the ECB and national authorities.
- Single Resolution Mechanism (SRM): Ensures that failing banks do not threaten financial stability by coordinating with national resolution authorities.
Tools for Crisis Management
- The SRM employs various tools:
- Shareholders and creditors must absorb losses before public funds are used.
- If necessary, a pre-funded bank sector fund can be accessed.
- A struggling bank may be sold to another institution for continued operation.
Deposit Guarantee Mechanisms
- Deposit guarantee systems are funded by banks but operate under harmonized European criteria; deposits are guaranteed up to €100,000 per person per bank.