Harmonizing the EU Regulation in the Banking Union
Kudrna, Zdenek and Sonja Puntscher Riekmann (2018). Harmonizing national options and discretions in the EU banking regulation. Journal of Economic Policy Reform, 21(2), 144-158.
30 Pages Posted: 7 Oct 2019
Date Written: October 15, 2017
The European Central Bank strives to harmonize over 160 national options and discretions (O&Ds) that contribute to the fragmentation of the banking union’s regulatory framework. National authorities seem prepared to accept it, despite previously insisting on the inclusion of all O&Ds into the EU legislation. We analyze a sample of O&D choices and their correspondence to cleavages pertinent to the political economy of EU banking. We find that the 11 post-communist member states use O&Ds more stringently to protect capital and liquidity in the local subsidiaries of foreign-own banks, which may complicate their potential opt-in to the banking union.
Keywords: EU; banking union; reforms
JEL Classification: G38
Suggested Citation: Suggested Citation