BANKING UNION: WHO SHOULD TAKE CHARGE?

The article discusses the banking union scheme of the European Union (EU) for the euro area. It explains the reasons and arguments behind the push for a union in which the European Central Bank (ECB) will take charge in the supervision of the financial institutions in the euro area. It also explores the banking union in the context of the EU policy interventions since the financial crises and the conflict between ECB's pursuit of macroeconomic stability and its objective of financial stability.