Is a Single Bank Supervisor Inevitable throughout the European Union?

Duncan Alford, Associate Dean and Professor, University of South Carolina

Nineteen Member States (out of 27) of the European Union have currently adopted the euro as their common currency and joined the banking union of the EU. By treaty provision all Member States except Denmark are required to adopt the euro. Eight Member States (including Denmark) have yet to adopt the euro. Two of these eight Member States (Bulgaria and Croatia) have recently joined the banking union. This article analyzes the likelihood of the remaining six Member States (Czech Republic, Denmark, Hungary, Poland, Romania, Sweden) of joining the banking union and adopting the euro as their common currency. While they have a legal obligation to join the euro, various factors, both economic and political, may delay that adoption. Keywords: Banking union, Single Supervisory Mechanism, euro adoption, European Central Bank, European Union

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USA Compliance Banking & Finance March 2022 Vol.15, No. 58, Winter 2022

Duncan Alford

Duncan Alford joined the faculty of the University of South Carolina School of Law in April 2007 and currently serves as Professor of Law and as Associate Dean and Director of the Law Library. The UofSC School of Law is the only public law school in South Carolina and part of South Carolina’s flagship research university. Professor Alford received his J.D. with Honors from the School of Law of the University of North Carolina at Chapel Hill. He received his B.A. with High Distinction in Economics and French from the University of Virginia. Professor Alford practiced law in Atlanta and Charlotte, NC, prior to entering academia. Before attending law school, Professor Alford was a Business Analyst with McKinsey & Company, Inc. He has held research fellowships at the Swiss Institute of Comparative Law, the Chinese University of Hong Kong, the American Academy in Rome, the College of Europe in Bruges, Belgium, and was a Fulbright Specialist at the University of Mkar, Benue State, Nigeria. He is admitted to practice law in South Carolina, North Carolina, and Georgia.

University of South Carolina

University of South Carolina School of Law Columbia, SC USA

USA Compliance Banking & Finance March 2022 Vol.15, No. 58, Winter 2022