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
Nudging with Arnie
In times of constant information overflow, even regulators have to fight for consumers' attention. The UK Financial Conduct Authority (FCA) now came up with this TV advert in order to alert consumers who have been missold PPI (payments protection insurance) to a looming deadline for making a complaint. It is..to say the least... extraordinary, bordering … Continue reading Nudging with Arnie
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
Struggling Banks and Struggling Politicians: Precautionary Recapitalisation as a Threat for Goals of European Financial Regulation?
Lately, the instrument of precautionary recapitalisation has aroused more and more attention in discussions on European financial regulation, mostly in the context of the recent Italian version of the ongoing financial crisis. While the Italian government and others are trying to sell precautionary recapitalisation as a benevolent application of an instrument officially provided for in … Continue reading Struggling Banks and Struggling Politicians: Precautionary Recapitalisation as a Threat for Goals of European Financial Regulation?
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