Banker

Abstract

This chapter reflects upon the increasing process of Europeanisation of banking, which as resulted from more general federalising the process of banking regulation in the EU. A great process of transformation was started by the neo-liberal globalisation over the last 20 years of twentieth century, which gathered additional strength following multiple crises financial crises (such as the crisis beginning in 2007–2008). Their effects (with specific reference to the “vicious circle” between public and private debt, due to the sovereign debt crisis that that began in 2011) have compelled European institutions to deeply revise regulation models and supervision of banking markets, whose end is to strengthen both the overall stability of the financial system and single institutions. After the period of banking market liberalisation (called also “Great Moderation”), in which European regulation of the conditions and supervision of operations of parties involved in credit operations was based on the principles of minimum harmonisation and home country control, a new European project of governance of the banking system has evolved. It consists of a Banking Union, as a form of sectoral union, based on centralisation and coordination of powers on prudential supervision, prevention and resolution of lending institution crises, and on the deposits-guarantee mechanisms. Even if this federalising process is far from complete, it is affecting freedom to establish banks in the European Union and freedom to provide banking services.