Benefits and Challenges for Bulgaria From the Earlier Accession to the EU Banking Union Cover Image

Предимства и предизвикателства за България от по-ранно присъединяване към банковия съюз на ЕС
Benefits and Challenges for Bulgaria From the Earlier Accession to the EU Banking Union

Author(s): Kaloyan Simeonov
Subject(s): Politics / Political Sciences, Politics, Economy, National Economy, Economic policy, EU-Accession / EU-DEvelopment
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: Banking Union; EU; Bulgaria; EU Development; Single Supervisory Mechanism; European Central Bank; Banking Authority
Summary/Abstract: This article reviews benefits and challenges for Bulgaria from the earlier accession to the Banking union in the EU. The Banking Union foundation was established in 2014 with the Single Supervisory Mechanism and two related regulations allowing the European Central Bank to exercise monitoring of the banks from the Euro area whilst the second regulation amends the predecessing legislative act setting up the European Banking Authority. The author reviews the present situation in the Bulgarian banking sector, analyses the benefits emanating from earlier participation in the EU Banking Union and mentions several risks that shall be considered prior to the accession to the Banking Union. The research concludes that the Bulgarian accession to the Banking Union would be rather political than solely economic decision in a domestic perspective. This decision will be taken on a national level after consultation with the European partners and ECB in particular. Author highlights that Bulgaria historically gained more when transferred some sovereign functions (e.g., currency board in 1997, EU legislative compliance).

  • Page Range: 48-66
  • Page Count: 19
  • Publication Year: 2017
  • Language: Bulgarian