Banking Union is positive, but important improvements are still needed, MEPs say

The first EU Parliament annual report on the progress made in 2015 by the Banking Union (BU), drafted by the Chairman of the Economic and Monetary Affairs Committee, Roberto Gualtieri (IT, S&D), welcomed the BU as instrumental to ensuring stability and restoring confidence in euro area banks, but said that work still needs to be done.

The resolution was adopted by 351 votes in favour, 112 against and 30 abstentions. The two main EU group, the Christian-Democrats and the Socialists, all voted in favour of the report, the same goes for the Greens members and a majority of the Liberal Parliamentarians. The Eurosceptic, the Nationalist and the Radical-Left MEPs all voted against the text. The majority of the Conservative members abstained.

Banking Union 2015 overall

Concerning, the two pillars of Banking Union, the report welcomes the establishment of the Single Supervisory Mechanism (SSM) and acknowledges its successes since its creation. However, some criticism was also voiced by the adopted report. The text identifies a number of problems and significant margins of improvement.

It is noted that a very significant share of work is routinely devoted to administrative procedures which may not always be proportionate. EP Members are ready to consider proposals aimed at reducing the operational burden on structures at all levels and improving the effectiveness of the SSM supervision.
The report also underlines the need to avoid unnecessary administrative burden on credit institutions and in particular on smaller banks.

The establishment of an integrated European rulebook on financial regulation and consumer rights is requested by the MEPs in order to reduce the complexity of existing regulation.

With regard to the “second pillar” of the Banking Union, the Single Resolution Mechanism (SRM), the report also welcomes the efficient setting-up of the Single Resolution Board (SRB) and the establishment of national resolution authorities (NRAs) in the Member States. Moreover, the Member in favour of the text highlighted the importance of establishing efficient cooperation between the SRB and the NRAs for the smooth functioning of the SRM.

Finally, the adopted report welcomes the Commission’s proposal from November 2015 on risk sharing and risk reduction in the BU, the European Deposit Insurance Scheme (EDIS) which will become the third pillar of the Banking Union.


The Banking Union (BU) is an EU-level banking supervision and resolution system. In the aftermath of the financial and economic crisis, the BU was established as one of the crucial element in the creation of an “Economic and Monetary Union” (EMU) and to bring back confidence towards the banking sector.
So far, the Banking Union has two pillars, a single supervisory mechanism (SSM) and single resolution mechanism (SRM). On 24 November 2015, the Commission presented a proposal for a common European Deposit Insurance Scheme (EDIS) to become BU’s ‘third pillar’.