# Banking union

- Canonical URL: https://www.gerhardmerk.de/banking-union
- Post ID: 592839
- Modified: 2023-07-25T21:01:17+00:00
- Language: en

## Definition

A term that arose in 2012 in relation to EMU and is misleading without explanation. It is not to be understood as banks joining together within the euro area. Rather, it means three things, namely - a single, powerful supervisory authority for all EMU member states or even the EU, - the possibility of granting aid from the ESM bailout fund directly to ailing institutions, and not via the circuitous route of funds going to governments, which can then pass it on to the banks (under its charter, the ESM is allowed to lend money only to governments), and - a merger of all nation-state deposit insurance systems (a eurozone-level deposit insurance system); which means that the German deposit insurance system would also step in if, for example, the deposits of savers in southern Europe were at risk in the banks there. - Of course, a banking union in this sense can only be realized if the individual EMU member states are prepared to cede sovereign rights. This, in turn, is only possible for constitutional reasons if the people of the member states want it. There is much to suggest that the electorate does not want such centralization. - Even in the respected media, the banking union was presented as if all the liabilities of the troubled institutions, especially in Spain, Greece and Cyprus, had suddenly disappeared. In reality, the debts are only shifted in this way, preferably to the European paymaster № 1. This leads politically further into a disenchantment with Europe, disaffection with Europe among the citizens in the countries that have to pay for the lottery economy (catastrophic muddle) of other members. The slogan "Europe - not like this!" is spreading and radical parties are gaining strength. The communitization of existing financial burdens should therefore not be hidden under the guise of a banking union. - See resolution mechanism, unified, supervision, European, bailout, banking supervision, European, banking hospital, bank rescue law, bank testament, Europayer, cash cow, hegemon, lenient, lead supervisor, moral hazard, emergency fund for crisis banks, restructuring fund, rescue pacts, stability fund, European, spillover system, forced convertible bond. - Cf. Deutsche Bundesbank Monthly Report of November 2012, pp. 67 f. (presentation of plans, criticisms of the banking union), Financial Stability Report 2012, pp. 84 f. (benefits; need for clarification), Deutsche Bundesbank Annual Report 2012, pp. 98 f. (thingness of a temporal synchronization of central supervision and resolution), BaFin Annual Report 2012, pp. 56 f. (timing of discussions on the banking union), Monthly Report of the Deutsche Bundesbank of July 2013, p. 15 ff. (detailed presentation), Annual Report 2013 of the Deutsche Bundesbank, p. 15 f. (outlines), p. 23 ff. (detailed presentation; overviews). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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