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Archive » November 2025 » Crisis Management in the European Banking Union: Assessing the First Ten Years of Operation

Crisis Management in the European Banking Union: Assessing the First Ten Years of Operation

Paola Paiardini, Valerio Pesic
November 2025 - n. 11
Keywords: Aiuti di Stato, meccanismo di vigilanza unico, Brrd, schemi di garanzia dei depositi
Jel codes: G21, G28, H81, F36

Over a decade after the launch of the Banking Union, the European framework for banking supervision and crisis management has made significant progress, but still faces critical challenges. This paper examines the evolution of banking oversight in Europe, focusing on the establishment of the Single Supervisory Mechanism (Ssm) and the implementation of the Bank Recovery and Resolution Directive (Brrd). Key limitations are highlighted, including the absence of a common deposit insurance scheme, the complexity of applying the «no creditor worse off» principle, and the continued reliance on national public support. While centralized supervision has enhanced system credibility, it has not yet ensured a consistent and effective approach to crisis resolution. This study aims to contribute to the debate on the reforms still needed to complete the Banking Union, strengthen financial stability, and preserve the integrity of the European single market.

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