Covered bond supervision questioned under banking union

Banking union, the single supervisory mechanism and the single resolution fund should theoretically sever the sovereign-bank link, said representatives of the European Commission, the European Central Bank and the European Banking Federation at the European Covered Bond Council’s plenary session in Paris. However, the authorities did not actually know who ultimately had the responsibility to grant or take away a covered bond bank’s license which left delegates wondering who would ultimately be responsible for covered bond supervision.