One of the recommendations of the Draghi Report is the need to mobilize vast amounts of resources in strategic sectors. Specifically, between 750 billion and 800 billion euros annually in new investments are required to boost the growth and competitiveness of the European economy. This will only be possible with the support of the banking sector, which is essential for accessing financing.
The European banking sector is robust and prepared: it has successfully overcome the various turbulences experienced in recent months in international financial markets, even in an uncertain macroeconomic scenario, thanks to its solidity, liquidity position, and the measures taken since the financial crisis to strengthen its governance.
However, we are talking about a lot of money. While diversification of funding sources, with a strong push to create a common capital market, is always desirable, it may also be insufficient if the Banking Union is not completed in parallel.
Larger and more international banks can optimize the use of capital within the zone, thereby ensuring that savings flow between countries. This will bring greater stability to the system, foster a larger scale in the products and services offered, and also improve the profitability for European savers. Furthermore, under a single deposit guarantee fund, savers will be able to evaluate their financial options not so much by nationality, but by the combination of risk, return, and solvency of the entities. In short, the Banking Union can be an essential factor for the competitiveness of the European economy and for the finances of its citizens.
José Luis Martínez Campuzano, Spokesperson for the Spanish Banking Association
