And this has caused some to ask: Why shouldn’t we complete the banking union by erecting its third and final pillar with equal determination? Indeed, thoughts on a third pillar of the banking union have been gaining more and more attention of late.
One likely reason is that, despite many reform measures and efforts from all sides, we do not yet regard the euro area as being crisis-proof. Consider, for example, the large piles of non-performing loans held in bank balance sheets in several member states.