Integration Of EU Banking Supervision Is Missing

In recent years, the business environment and supervisory environment ofEuropean banking industry is changing rapidly.Although isolated before, a commonmarket of European banking industry is taking shape. In the period of economydownturn, European banks are also experiencing a difficult situation. As the sovereigndebt crisis and the banking crisis are getting worse, Europe need a super statemechanism to cope with crisis. The rapid spread of the banking crisis is partly due tothe development of European banking integration. However, it’s also an opportunityto push further the process of banking integration.The paper starts with the concept of banking integration, analyses the essenceand motivation of the process of banking integration. The paper gives a review of thedevelopment of the supervisory structure of banking industry and the risk which maycome with banking integration. Before the crisis, the legislative barriers of Europeanbanking integration have been removed, but the crisis also demonstrates the weaknessof the current system, which is the lack of a powerful supervisory institution. Thepaper will discuss the supervisory development in the future.