By Andrea Enria and Edouard Fernandez-Bollo
As we face the challenges raised by the coronavirus (COVID-19) pandemic, we should also focus on the actions needed to foster the integration of banking activities within the banking union. And this means, first and foremost, focusing on the functioning of banking groups with activities across different Member States. Of course, the ultimate aim should be to complete the banking union and have a fully integrated Single Market. In this blog post, we will highlight the need to combine the road to greater integration with safeguards for banking group subsidiaries that are located in a different Member State to their parent bank. This will ensure that, in the event of a crisis, the interests of national customers and markets will be taken into account, in particular until a European deposit insurance scheme is in place. We believe that the banking union, and the mechanisms that can be put in place within the Single Supervisory Mechanism, can restore trust in cooperative solutions that balance the legitimate calls to protect national interests with the equally legitimate need for a more integrated and efficient internal market.