Developing the individual elements of a banking union will be a huge task. If the vision is to be realised, the banking union must comprise at least three elements: (1) a single supervisory mechanism, (2) a single resolution mechanism for failing banks, and (3) a single deposit guarantee scheme.
BIS central bankers’ speeches  3  Initially, focus has been on establishing a single supervisory mechanism under the auspices of the European Central Bank in order to solve some of the problems currently faced by some European banks. The single supervisory mechanism is primarily aimed at euro area banks, but non-euro area member states may opt in.