Europe: IMF discussion note on the banking union

The International Monetary Fund has published a staff discussion note concerning the proposed banking union, together with accompanying technical notes: see, respectively, here (pdf) and here (pdf). It is stated, amongst other things, that the European Council's agreement on the single supervisory mechanism in December was an important step but raises challenges that should not be underestimated.

Europe: Eurosystem responds to banking structure proposals

A response from the Eurosystem (the European Central Bank and the national central banks of the Member States whose currency is the euro) regarding the recommendations of the High-level Expert Group on reforming the structure of the EU banking sector has been published: see here (pdf). Amongst other things, the Eurosystem supports the separation of banks' deposit-taking activities from other higher risk activities.

Europe: Council reaches agreement on single supervisory mechanism for credit institutions

In a statement published earlier today, the Council of the European Union stated that agreement had been reached with regard to the single supervisory mechanism for credit institutions within the Euro zone: see here (pdf). Under the single supervisory mechanism, the European Central Bank will have direct supervisory responsibility for the largest credit institutions in the Euro zone countries.

Europe: Court of Justice approves the European Stability Mechanism

The Court of Justice of the European Union has held that EU law does not preclude the conclusion and ratification of the Treaty establishing the European Stability Mechanism by the Member States in the euro zone: see here (pdf). A copy of the Treaty is available here (pdf).

Europe: a single supervisory mechanisms for euro zone banks - Commission publishes legislative proposals

The European Commission published legislative proposals yesterday for the creation of a single supervisory mechanism for euro zone banks under which the European Central Bank will play a central role: see here. The proposed legislation consists of two Regulations - see here (pdf) and here (pdf) - together with a Communication in which the Commission sets out its overall vision for the creation of a banking union covering the single rulebook, common deposit protection and a single bank resolution mechanism: see here (pdf). For further information see: Commission press release and FAQs.