Unlock eSignature Legitimateness in Banking across European Union

How to eSign a document: e-signature legitimateness for Banking in European Union

What is the banking union? The banking union is a fundamental change to the way banks are supervised in Europe. It ensures that the banking sector is safe and reliable. And that if problems occur banks can be resolved without using taxpayers money. That is what happened in the recent past, right? But how does it work? The banking union is made up of 2 parts: the Single Supervisory Mechanism and the Single Resolution Mechanism. They are mandatory for all euro-area countries, and open to all other countries in the EU. These two mechanisms are based on the same rules which apply to all banks in the European Union, not only those in the Banking Union. What rules? The rules and principles adopted by the EU after the financial crisis to make the financial sector safer. For instance, it includes rules to make sure that all EU banks hold enough capital, and act in a more responsible and sustainable way. Savers are also much better protected, and deposits up to 100 000 EUR are guaranteed. These rules mean that there is the same level of protection across the EU and are designed to prevent panic withdrawals if a bank is in distress. And what about the 2 mechanisms that you mentioned? When the financial crisis turned into the Eurozone debt crisis, it became clear that banks in countries that share the euro are more interdependent and that they need, on top of the same rules, also the same supervision and resolution. So, the EU leaders and the Parliament decided that the European Central Bank should be in charge of banking supervision at the European level, this is the Single Supervisory Mechanism. And if a bank failed and needed to be resolved, this would also be done at European level. A new agency, called the Single Resolution Board will be in charge. This is the Single Resolution Mechanism. Would you like to learn how these 2 mechanisms work in practice? Sure! Then, click here for the next video: The Banking Union in Practice.