The rapid collapses of Silicon Valley Bank (SVB) and Signature Bank in the United States and Credit Suisse in Switzerland have reawakened debates on banking policy in the European Union (EU). But the absence of financial turmoil in the EU similar to what happened in the United States means that political obstacles will prevent completion any time soon of the banking union project that remains the EU’s foremost banking policy challenge. By contrast, the US banking mess could lead EU policymakers to adopt capital requirements that bring them closer to the international standards known as “Basel…
