Macro-financial risk
2026-04-26
11 minute read
17 sources
EU Banking Union 2026: EDIS Deadlock and the Cross-Border Consolidation Wave
The third pillar remains unbuilt while the first wave of genuine cross-border bank M&A inside the euro area is already negotiating with finance ministries. UniCredit on Commerzbank, BBVA on Sabadell, UniCredit on Banco BPM. Capital is moving faster than the law.
The euro area Banking Union enters 2026 with two of three pillars operational and the third, a European Deposit Insurance Scheme, frozen since the 2015 Commission proposal. The Single Supervisory Mechanism has been live since November 2014 and now oversees 113 significant institutions. The Single Resolution Mechanism reached its target of...