The neglected side of banking union: reshaping Europe’s financial system
Policy contribution presented at the informal ECOFIN in Vilnius on September 14, discussing how Europe's financial system could and should be reshaped.
This policy contribution was presented at the informal ECOFIN in Vilnius on September 14. It discusses how Europe’s financial system could and should be reshaped. It starts from two basic points: First, the banking system needs to be credibly de-linked from the sovereigns and banks should operate across borders. Europe needs fewer national champions. Second, other forms of financial intermediation need to be developed. Both steps require a significant stepping up of the policy system, including a single resolution mechanism. Together, this will render Europe’s financial system more stable, more efficient and more conducive to growth.