유로존 재정 위기와 은행동맹

Eurozone’s Sovereign Debt Crisis and Banking Union

This paper analyzes the on-going banking union (hereafter as the BU) in theEurozone. The union results from the fact that the sovereign debt crisis in the singlecurrency area led to fragmented financial market, further worsening the crisis. The BU has four crucial elements: single supervisory mechanism (SSM); singleresolution mechanism, fiscal backstop, harmonization of deposit insurance guarantee. Among the four components, the eurozone is to introduce the single supervisorymechanism in the fourth quarter of 2014, while other parts are still in the making. With regard to the SSM, two-tier supervision of the financial institutions between theEuropean and national level can be problematic in the midst of financial crisis. Likewise, decision-making powers of the resolution mechanism predominantly restswith the Council of European Union, making the Member States wield exorbitantpowers in the process. Fiscal backstop agreed to be fully operational beginning 2026has too small amount of money to tackle the systemic crisis.