Progress on Banking Union and Prospects for Capital Union

Two sets of major structural changes in the regulatory and institutional frameworks governing EU financial institutions and markets are underway.  Progress has been made on the Single Supervisory and Single Resolution Mechanisms with remaining work on establishing a European Deposit Insurance Scheme; all reliant on the foundation of the single rulebook.  These efforts form the core of Banking Union.  The speed of operationalization of the SSM and SRM were path-breaking but necessary to bring credibility and functionality to the banking system during the aftermath of a banking and sovereign debt downward spiral.

The Capital Markets Union project is a broader-based initiative to increase the depth and span of alternative capital financing options outside the dominate banking system in the European Union.  There has been a near total failure in extending the Single Market to capital markets across EU Member States.  Because of these fractionating effects there is much potential to see significant gains in lowering costs, improving efficiencies, and cutting delays in funding to mobilize capital markets in boosting the investment process across the EU.

We will outline the current state of play in both the Banking Union and Capital Markets Union.  The participants will discuss public policy developments and analysis of the effectiveness of the policy proposals.  We will examine the relationships among new policy implementation and existing banking and financial market structures in deepening and improving the integration and sustainability of the financial system in progress toward a real contribution to employment and growth.