28 Jun 2013
Flash: EU summit to discuss banking union again – Goldman Sachs
FXstreet.com (New York) - The EU government heads will discuss the next steps in forming the Banking Union at this week’s summit on June 27/28, notes the Economics Research Team at Goldman Sachs.
According to the team, “We do not expect any major announcement but rather a general reaffirmation from all participants that they will work towards overcoming the remaining hurdles.” Of the three pillars of the Banking Union, only the Single Supervisory Mechanism (SSM) is well advanced and should become operational next year. Significant differences still exist with respect to the Single Resolution Mechanism (SRM) and the common deposit guarantee.
The legal work for the Single Supervisory Mechanism has almost been completed, although formal approval by the European Parliament, which would allow the new supervisory architecture to become operational by 2014, is pending. “The ECB will be responsible for the overall effectiveness of the new supervisory regime.” the team notes.
According to the team, “We do not expect any major announcement but rather a general reaffirmation from all participants that they will work towards overcoming the remaining hurdles.” Of the three pillars of the Banking Union, only the Single Supervisory Mechanism (SSM) is well advanced and should become operational next year. Significant differences still exist with respect to the Single Resolution Mechanism (SRM) and the common deposit guarantee.
The legal work for the Single Supervisory Mechanism has almost been completed, although formal approval by the European Parliament, which would allow the new supervisory architecture to become operational by 2014, is pending. “The ECB will be responsible for the overall effectiveness of the new supervisory regime.” the team notes.