AMLD 5 was published in the Official Journal of the EU on 19 June 2018 and called upon EU member states to transpose it by 10 January 2020. As the name would imply, it is the fifth iteration of the AML directive that was first introduced by the EU in 1991. It is, however, the … Continue reading AMLD 5 and the EU May 2020 AML/CFT Action Plan – where do crypto assets fit into the emerging landscape?
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
A keynote policy of UK financial regulation since the financial crisis has been the ‘ring-fencing’ of retail banks into separate and independently operated entities, so-called ‘ring-fenced bodies’ (RFBs), distinct from entities that carry on other, and especially investment, banking activities within the same corporate group. Such structural regulation of the banking sector – which entered … Continue reading In Two Minds: The Governance of Ring-Fenced Banks
For some, it is the panacea to all problems in banking, others sees it as just one pillar among many, while banks themselves usually complain about it: capital regulation. Should banks carry more equity? Always a prominent topic in financial regulation, it is once again on top of the policy agenda, with the US president ordering … Continue reading Equity, again
Looking back at the causes of the financial crisis, it is often assumed that managers’ accountability vis-à-vis the shareholders was the major factor contributing to the excessive risk- taking that could be observed. Whilst this implication holds true, applying undifferentiated solutions to complex structures runs the danger of replacing one problem with another. Therefore, the regulatory … Continue reading Shareholders, Managers, and the Corporate Governance of Banks