Per Callesen: The European banking union in perspective - is there risk sharing and joint liability?

Speech by Mr Per Callesen, Governor of the National Bank of Denmark, at the Finance Denmark's Executive Conference, Copenhagen, 3 September 2018.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Thank you for inviting me to speak.

Many of us who are present today had an opportunity to focus on the economy at the annual meeting of the Association of Local Banks a few months ago. So I will provide only a brief summary – without any figures. Instead, my presentation will be about international cooperation and specifically the European banking sector and the reinforced banking co-operation, also known as the banking union. I will not cover all aspects of this topic, but will focus on the issue of risk sharing, i.e. whether some institutions will be liable for the debts of others.