Optymalny kształt pierwszego filara unii bankowej
The Optimal Design of the First Pillar of the Banking Union

Summary/Abstract: The article aims to answer the following research questions: (1) what are the goals of the banking union and is it able to achieve them? (2) what ‘structural birth defects’ of the SSM may limit its effective functioning? (3) how the creation of the banking union will influence the European safety net? Deductive method and literature review are used. The reasons for the creation of the banking union include: reduction of sovereignbank nexus, as well as the negative spillovers of instability in the euro area. In addition, it aims to counteract disintegration of EU financial markets, contribute to the deepening of single market and harmonization of supervisory practices and limiting national supervisory forbearance. Banking union is a step towards achieving balance between integration of financial market supervision and cross-border integration of financial markets in the EU. Achieving those goals would benefit from swift introduction of all banking union pillars and transferring supervisory powers to the EU level, along with the responsibility for financial stability. It would be desirable to ensure equal rights and responsibilities of euro zone and opt-in countries, strengthen its legal basis and establish a clear division of tasks between institutions within the financial safety net in the EU. Entrusting ECB with supervisory powers involves both benefits and risks. The banking union poses a risk of reducing confidence in the financial systems of the EU countries remaining outside it and the risk of regulatory arbitrage. The creation of the banking union compliments institutional changes in the financial safety net of the euro area introduced after the global financial crisis, including increased involvement of central banks in both micro- and macroprudential supervision, as well as growing role of pan-European institutions.

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