Today, not even two years after the EU Heads of State or Government committed to build a genuine banking union, the two cornerstones of this ambitious project – the Single Supervision Mechanism (SSM) and the Single Resolution Mechanism (SRM) – are in place.
Amid the increased possibility of systemic risk, where shocks arising from certain financial institutions or markets spread rapidly due to the heightened financial interconnectedness, financial stability cannot be achieved based solely on policies of individual countries, unless accompanied by international cooperation.