CHAPTER 3

AT A GLANCE

A eurozone-based “banking union” which would create a single supervisor for eurozone banks and open up the possibility of direct recapitalisation from supranational funds could be crucial for making the eurozone more stable. This is good for all of Europe, including emerging European countries. Recent banking union proposals have nonetheless raised concerns in some of these countries. Are these justified? Aside from helping resolve the eurozone crisis, would the proposals improve the supervision and resolution of multinational banks across financially integrated Europe? This chapter analyses current proposals and suggests some enhancements from the perspective of countries whose banking systems are dominated by these banks.