SAFE Policy Lecture: Pentti Hakkarainen (ECB)
Title: Europe’s Banking Union: Achievements and Prospects
Speaker: Pentti Hakkarainen, Member of the Supervisory Board, Single Supervisory Mechanism, European Central Bank
Moderator: Hans-Helmut Kotz, SAFE and Harvard University
A monetary union without a common banking policy is incomplete. This assessment dawned upon European policy makers as the Great Financial Crisis morphed into the European sovereign debt crisis. It took however the near-unraveling of the Eurozone in 2012 before the banking union concept, previously dismissed, became politically acceptable. Since November 2014, after a comprehensive screening process, the Eurozone’s largest banks are now supervised by a common institution, the Single Supervisory Mechanism of the ECB. A common authority is also charged with restructuring or resolution of troubled banks. A Eurozone backstop for retail depositors, however, is still under debate. What has been achieved so far? Where do we stand? And what’s next?
Pentti Hakkarainen is a Member of the Supervisory Board of the Single Supervisory Mechanism, representing the ECB in the authority charged with supervising the Eurozone’s largest banks. Prior to joining the SSM, Mr. Hakkarainen was Deputy Governor of Suomen Pankki, the Central Bank of Finland, as well as Chairman of the Finland’s Financial Services Authority. He also served as CEO of Postipankki Ltd., the Finnish Postal Bank and has a long and outstanding experience in international banking and regulation. Mr. Hakkarainen holds Masters’ degrees in Economics as well as in Law.