Brief Considerations Regarding the Establishment of a Banking Union in the European Union

Abstract

This paper analyzes whether the recent trends regarding the European financial supervisory system are able to establish a better strong decision-making center. Nevertheless an European Banking Union has its own advantages and disadvantages, but the question is if by empowering the ECB to supervise banks, will it have a greater and more benefic impact in case of a new crisis? After all, both the Central Bank and national supervisors must continue to work closely together in order to provide a better transparency and connection between them. The reform of the European Banking Union is one of the greatest challenges for the Member States. In what follows, I will try to present both the positive and less positive sides of it, related to various official arguments in the economical literature.