Is it Working?

Eileen Rae ACCA Financial Director

BANKING UNION – ACCA’s STANDING

‘We are shocked and surprised that, even after the ship has run aground, so many of those who were on the bridge still seem so keen to congratulate themselves on their collective navigational skills.’ UK PARLIAMENTARY COMMISSION ON BANKING STANDARDS 2013

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• performing • informing • Holding to account The global body for professional accountants

What was the problem?

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What was the problem? • Bank – sovereign relation • Unstable financial integration • Uneven distribution of financial activity • Inconsistent rules The global body for professional accountants

What does the Banking Union aim for?

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What does the Banking Union aim for? Single Resolution Mechanism

Single Supervision

Single Rulebook

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The Process.

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The Process • Treaty change OR faster progress • Transitional period? • Deadline for CRD IV

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Is it Working?

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Is it Working? ECB’s resolution to act in mid 2012 reflected in ACCA’s fiveyear review of the global economic recovery

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Global Business 30 Confidence Index (4qtr moving 20 median) 10 0

SMEs Large corporates Large financials Public sector

-10 -20

-30 -40 -50

Source: ACCA Global Economic Conditions Survey

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Is it Working? • Large banks focus

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Is it Working? Figure 1 Small banks in the euro area (Veron, 2014)

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Is it Working? • Resolution

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ACCA’s Involvement

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