The Eurosystem and the Single Supervisory Mechanism: institutional continuity under constitutional constraints

In a recently published ECB legal working paper, I analyse regulatory solutions that have been adopted to address constitutional constraints imposed on the functioning of the Single Supervisory Mechanism (SSM), in which the ECB’s exclusive supervisory competence is carried out. I argue that the operational framework governing the functioning of the SSM has assimilated, to … Continue reading The Eurosystem and the Single Supervisory Mechanism: institutional continuity under constitutional constraints

Symmetry in EU banking regulation – getting the policy implementation mix right in the Banking Union era

Banking Union has revolutionised EU banking regulation and supervision by centralising decision-making processes and strengthening policy tools associated with specific policy aims – financial stability in particular. This post argues that in the absence of explicit hierarchy between policy objectives under EU law, symmetry within EU bank regulatory architecture is required. Implementation of other relevant … Continue reading Symmetry in EU banking regulation – getting the policy implementation mix right in the Banking Union era

ECB’s “Power Grab”? The NPL guidance, it’s legal

The never-ending story of non-performing loans (NPLs) in the eurozone has now developed into a legal discussion. The ECB started out with „guidance to banks on NPLs“ in March last year and a subsequent „addendum“ presented in October. That NPL guidance has been criticised by the European Parliament and the EU Council for being a … Continue reading ECB’s “Power Grab”? The NPL guidance, it’s legal

European Banking Institute sets up a Young Researchers Group

In December 2017, the European Banking Institute (EBI) established the Young Researchers Group (YRG) for PhD researchers of EU universities. The initiative is chaired by Lynette Janssen (Leiden University) and Agnieszka Smoleńska (EUI), in cooperation with the Academic Board of the EBI. The EBI is an international centre for banking studies in Frankfurt established as a joint … Continue reading European Banking Institute sets up a Young Researchers Group

Revisiting the Taper Tantrum: A Case for International Monetary Policy Coordination

In the backdrop of the 2007-2008 financial crisis, central banks came to acquire a prominent role in alleviating the immediate and medium term effects of the crisis on the domestic economy. In all systemic countries (US, UK, EU and Japan) central banks were confounded with a slowing economy, rising unemployment and fading market confidence, while fiscal … Continue reading Revisiting the Taper Tantrum: A Case for International Monetary Policy Coordination

Financial Stability Conference in Berlin, October 18

I would like to draw your attention to a conference about financial regulation taking place in Berlin on October 18, the „Financial Stability Conference“. It is organised by the „Financial Risk and Stability Network".  Suffice it to say, that speakers and participants are just about the top tier of European financial policymakers and topics discussed are … Continue reading Financial Stability Conference in Berlin, October 18

Keeping Pandora’s Box Closed: Precautionary Recapitalisation and the Dangers of Regulatory Discretion

Precautionary recapitalisation as set forth in Art. 32 paragraph 4 lit. d (iii) BRRD could become a key to the Pandora’s box of factual bail-outs and thus throw back European financial regulation by years. This threat, which I described in an earlier post on this blog, seems to have become somewhat more imminent after the case of Monte dei … Continue reading Keeping Pandora’s Box Closed: Precautionary Recapitalisation and the Dangers of Regulatory Discretion

Why the New Prospectus Regulation is not the Adequate Response for Cross-Border Crowdfunding Offerings

On 5 April 2017, the European Union adopted the new Prospectus Regulation (‘PR3’).[1] PR3 replaces the previous EU Directive 2003/71/EC (the ‘Prospectus Directive’). The crowdfunding industry warmly welcomed the increase of the thresholds for small fundraisings under PR3 after having lobbied extensively on issues that arose under the previous PR3 draft proposal.[2] This is understandable since … Continue reading Why the New Prospectus Regulation is not the Adequate Response for Cross-Border Crowdfunding Offerings

Regulators’ commitment to bail-in – is it credible? The case of MPS and Banco Popular

With the Italian bank Monte dei Paschi di Siena (MPS) about to be bailed out again by the Italian taxpayer, push comes to shove: Are post-crisis reforms working? First and foremost, this concerns the innovative resolution instrument of "bail-in". While until a few days ago, there was no reason to assume that the vicious combination … Continue reading Regulators’ commitment to bail-in – is it credible? The case of MPS and Banco Popular