Problems in the banking system are at the core of the current crisis. The establishment of a banking union is a necessary (though not sufficient) condition for eventual crisis resolution that respects the integrity of the euro. The European Commission's proposal for the establishment of a Single...

This handbook provides an overview and analysis of state-of-the-art research in banking written by leading researchers in the field. It strikes a balance between abstract theory, empirical analysis, and practitioner and policy-related material.