This will reduce their strength in competing in the European space with an advantage and will be progressively reflected in banks’ ratings and funding costs. On the other hand, countries with vulnerable public finances and smaller banks will no longer be able to support, and possibly keep, their national champions.
Finally, in both cases, governments accept the transfer of supervision and resolution of banks to the European level in what has to be considered a remarkable sharing of sovereignty and a desire for “ever deeper union”. 2  BIS central bankers’ speeches  With these important steps, the first goal of Banking Union to separate banks from sovereigns has, in practice, been achieved.