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Banking Union: addressing the concerns of host countries (capital, liquidity…) and macroprudential issues​

Banking Union: addressing the concerns of host countries (capital, liquidity…) and macroprudential issues​

Day 2 Morning

Thursday 12 September

Room :

ROOM 2

Speakers

Chair
Giuseppe Siani
Director General for Financial Supervision and Regulation - Banca d'Italia
Public Authorities
Kerstin af Jochnick
Member of the Supervisory Board - European Central Bank (ECB)
Urska Cvelbar
Director General, Financial System Department - Ministry of Finance, Slovenia
Nicoletta Mascher
Head of Financial Sector and Market Analysis - European Stability Mechanism (ESM)
Peter Palus
Member of the EFC/EWG & Head of Unit, Financial - Permanent Representation of the Slovak Republic to EU
Industry Representatives
Christian Edelmann
Managing Partner Europe - Oliver Wyman (UK)
Riina Salpakari
Head of Public Affairs Finland - Nordea Bank Abp
Johanneke Weitjens
Global Supervision, Public & Regulatory Affairs - ING Group

Objectives

The launch of the Banking Union project was a response to the EU Sovereign crisis (2011-2012). The design of the banking union envisaged common supervision, resolution and deposit insurance in the euro area. Only two of its pillars, European supervision and resolution, are in place.

The Covid Crisis and the US banking turmoil in 2023 has shown that the creation of a Single Supervisory Mechanism (2014) has helped promote a more resilient European banking sector. But 10 years after its creation, the project has not been completed and one of its main objectives – namely to break the feedback loop between banks – has not been achieved.

The session will first assess the reasons and concerns that explain these host country ring-fencing practices and the related fragmentation of banking in Europe.

Speakers will then be invited to share their views on the policy priorities and key success factors for addressing these long-standing home-host issues.

Points of discussion

  • What are the main concerns of host countries that explain their ring-fencing practices and the resulting fragmentation of banking in Europe?
  • What policy priorities could overcome ring-fencing policies and the fragmentation of the EU banking sector? How do we address the long-standing home-host issues?