New payments and contributions in the institutional context of the Banking Union

Summary

The Banking Union requires financial institutions to support the administrative cost of the new institutions and finance the new resolution fund. Current regulatory debate is focused on how to define a methodology to compute these new payments and charge them to banks. For banks this new reality implies new costs, however even if in the short run the profits of the European banking system may be affected, in the long run the benefits of a robust banking union will clearly overcome the financial costs.

Geographies

Topics

Tags