3  Hoenig, Thomas (2013) “Basel III, a well-intended illusion” remarks at the International Association of Deposit Insurers, (available in the FDIC site)  BIS central bankers’ speeches  3  Banking Union has for now two key components: the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM).
The creation of a European Deposit Guarantee Scheme which the third component has been postponed for the medium term. The creation of the SSM, which we expect to be operational next year, should increase confidence in the euro area banking sector through two main channels. First, the SSM will provide reassurance to investors that supervision is consistent and effective across all participating countries.