How will Europe's banking system respond to future challenges?

This episode of The Sound of Economics focuses on the banking
system in Europe and some of the challenges it is facing. The
financial crisis made it clear that more should be done to create
conditions for a safer financial system. The EU has taken
measures to do that, and one of those measures is the creation of
the banking union, which implies bringing all instruments of the
banking sector policy to the eurozone level.


Nicolas Véron explains to which extent the banking union has been
completed, and shares his assessment on how successful the
implementation of the new framework has been so far. While there
are some aspects of the framework that can already be assessed,
it seems that addressing the issues of Italian banks will be the
first big test of how it will function in practice. Silvia Merler
shares her opinion on the situation in Italy and reforms that
have been taken so far.


One of the key aspects of the banking union is the creation of
the European deposit insurance scheme, which has proven to be the
most challenging part of completing the banking union. Dirk
Schoenmaker reflects on the topic.


Our guests go on to discuss how Brexit will affect the European
banking and which risks and opportunities it might bring.
Finally, they identify some of the challenges that the European
banking system will have to address in the longer run.


SPEAKERS Silvia Merler, Affiliate Fellow


Dirk Schoenmaker, Senior Fellow


Nicolas Véron, Senior Fellow


CREDITS Presented and produced by Antonija Parat