As COVID-19 threatens an unprecedented economic crisis, the Council asked the Eurogroup on 26 March to present proposals for common fiscal measures to tackle the crisis within the next two weeks. So far, three models have been put forward by economists, that could serve as a template. First, the creation of a Covid Credit Line under the ESM. … Continue reading ESM-loans or Corona-bonds – An analysis of their compatibility with EU Law, the ESM-Treaty and German Constitutional Law
Digital transformation is by far the most prominent issue on the 2020 agenda of BaFin, the supervisor responsible for Germany’s banks with less than €30 billion in assets (above, ECB is in charge). Will the key topics identified as of now for those banks in future also attract increased attention by supervisors in other jurisdictions and of bigger banks?
The establishment of Banking Union and the Single Resolution Mechanism (SRM) in the Eurozone constitutes a turning point for the European risk management framework. Bank failures should, in principle, no longer be dealt with taxpayer money but should be instead either liquidated or resolved on public interest grounds with the use of internal and collective … Continue reading Making Retail Banks Resolvable
Its that time of the year again: The Financial Risk and Stability Network holds the annual Financial Stability Conference as well as a Policy Workshop in Berlin on October 28 and 29. While speakers at the conference draw on the highest calibre of policymakers in International Financial Regulation, the Policy Workshop provides a superb and … Continue reading Financial Stability Conference and Workshop 2019, Berlin, October 28/29
The new Recovery and Resolution framework for banks was welcomed as a game changer in addressing financial stability concerns. In particular, the mechanism of internal recapitalisation through which junior and senior creditors are wiped-out and converted into ordinary shares to absorb losses (bail-in) was expected to significantly enhance the level of market discipline. Nonetheless, many … Continue reading Can Contracts Discipline Bankers? Bail-inable Securities and Financial Contracting
The EMU is skewed towards the interests of certain EU members and Italy isn’t one of them. This is the reason behind many of our problems. [Disclaimer: This blog post was written during the last budget proposal standoff between Italy and the European Commission. However, the current situation is similar: We just moved to the … Continue reading EU vs Rome: What’s the matter with Italy?
In its decision dated 19 March 2019, the General Court of the EU annulled the Commission’s decision 2016/1208 of 23 December 2015, which had concluded that the support provided by the FITD (Italian Deposit Guarantee Scheme, or ‘DGS’) to one of its members, the regional Italian bank, Tercas, amounted to ‘’aid illegally granted by the … Continue reading General Court’s blow to the Commission’s strife to end bail-outs: Tercas’ state aid decision annulled
Dear friends of financial regulation, in recent years I have already advertised participation in the Financial Stability Conference in Berlin. For this year, let me also draw your attention to the accompanying Research Workshop which will take place on October 29, 2019. I can only recommend young researchers and professionals to make use of this … Continue reading Call for Policy Proposals – Financial Stability Conference Workshop, Berlin
Long awaited, the EU is finally about to update its common banking rulebook. In this post, I provide an overview of the most important changes the regulatory community will have to consider in the coming months. The current EU legislative package consisting of Capital Requirements Directive and the Capital Requirements Regulation was introduced to implement … Continue reading The EU banking package: CRD V & CRR II
Fellow financial regulation nerds, let me quickly draw your attention to the International Summer School on Banking & Financial Law 2019 taking place in Milan and Lake Como from July 22 - 26. Participating universities, AEDBF (European Society for Banking and Financial Law) and EBI (European Banking Institute) have put together a highly interesting programme … Continue reading International Summer School on Banking and Capital Markets