There will be, however, a coordinated distribution of tasks between the ECB and the national supervisory authorities, depending on the size of banks and national banking systems. With all banks in the euro area under unified supervision, responsibility for deposit guarantee and resolution shall be held at the level where supervisory powers are exercised, i.e. at European level.
Banking union must therefore cover not only integrated supervision, but also shared deposit guarantee and bank resolution mechanisms. If a single supervisory mechanism is not accompanied by European deposit guarantee and bank resolution mechanisms, it represents banking union under construction and therefore an incomplete separation between sovereign and banking risk.