In the EU, the Single Rulebook and the European System of Financial Supervision were introduced. The euro area went further, launching the first steps of the Banking Union and its institutions, the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM) at an amazing speed. The firm, cohesive European commitment towards Banking Union helped counter financial fragmentation.
However, as the first two pillars of Banking Union were put in place, the political will to build the third pillar – a European Deposit Insurance Scheme (EDIS) – and complete the overall architecture waned as policymakers got stuck in the risk reduction vs. risk sharing debate, losing sight of the final objectives.