Commenting on the European Commission’s proposal for a European banking union, issued today, Simon Lewis, the chief executive at the Association for Financial Markets in Europe (AFME) said:
“We welcome the Commission’s proposal as a vital step towards restoring confidence in Europe’s financial system and wider economy.
“Creating a strong banking union, built around a credible and effective single supervisor, should break the link between the solvency of Europe’s banks and its sovereigns, which has been a significant cause of instability in recent years.
“Some key issues remain to be resolved, including the implications for the Single Market; the allocation of responsibilities between the ECB and national supervisors within and outside the banking union; and the essential backstop arrangements for resolution and depositor protection. We stand ready to assist policymakers in working through the issues.”