The concept of Banking Union is simple a European bank should be able to operate in the Banking Union exactly as it operates in its domestic market, but its implementation is complex. This entails fungibility of capital and liquidity, simplified governance structures, and lower operational costs. The institutional framework should create an environment fostering a more geographically diverse, more resilient banking system.
There still are a number of legal, institutional, political and even cultural problems to overcome before we can declare this ambitious undertaking achieved. The direction of progress is clear, its speed less so. Banking Union is not an end in itself, but a backbone of the single currency.