In less than half a decade, the European Union moved from decentralized banking supervision and resolution to the Single Supervisory Mechanism and the Single Resolution Mechanism. The fact that more needs to be done to complete the Banking Union should not come as a surprise.
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.