The Banking Union is one of the most important and ambitious projects launched by the European Union in the last ten years. With supervisory and resolution mechanisms for Eurozone banks now up and running, the current narrative is that most of the work to create the Banking Union is complete. This Policy Paper by Sima Kammourieh Petrov disputes this view, arguing that the persistence of financial protectionism - or “ring-fencing” - at Member State level significantly erodes the effectiveness of the Eurozone’s single supervisory and resolution mechanisms. It formulates concrete recommendations and calls for a political leap of faith from Eurozone Member States to cease ring-fencing practices.
Sima Kammourieh Petrov wrote this Policy Paper as a guest author. She is a senior policy expert on economic and financial regulatory matters. In the past, she worked in various roles in the French treasury and government as well as in the banking sector.