Download publication

Policy Brief

Is Europe ready for a major banking crisis?

Nicolas Véron argues that Europe‘s arrangements for financial stability have been rendered inadequate by the emergence of ‘pan-European banks‘, whose activities span several EU countries. In the event of failure of a pan-European bank, voluntary coordination between national authorities would be unlikely to lead to decisions that best serve Europeans‘ collective interest. The policy brief […]

By: Date: August 9, 2007

Nicolas Véron argues that Europe‘s arrangements for financial stability have been rendered inadequate by the emergence of ‘pan-European banks‘, whose activities span several EU countries. In the event of failure of a pan-European bank, voluntary coordination between national authorities would be unlikely to lead to decisions that best serve Europeans‘ collective interest. The policy brief suggests a two-tier framework in which the challenges posed by pan-European banks are addressed with EU-level prudential arrangements and institutions, while most banks remain covered by the current national supervisory systems.

Download Publication

Is Europe ready for a major banking crisis?

Policy Brief

Is Europe ready for a major banking crisis?

16m read (8 pages)

Download publication

Topics

Comments

Read article

Blog Post

Guntram B. Wolff
Thomas Walsh

The dragon sneezes, Europe catches a cold

European stock prices, financial contagion and the trade exposure to China. How the turmoil in China’s stock market is affecting European stock markets through Europe's trade exposure to China

By: Guntram B. Wolff and Thomas Walsh Topic: Finance & Financial Regulation, Global Economics & Governance Date: August 26, 2015
Read article More on this topic

Opinion

Ashoka Mody
Guntram B. Wolff

Euro Area Banks Remain Vulnerable

Strengthening the banking system is important to achieve a sustainable recovery, because it will revitalise credit to the healthier segments of the economy. However without restructuring, euro area banks are still vulnerable.

By: Ashoka Mody and Guntram B. Wolff Topic: Finance & Financial Regulation Date: August 21, 2015
Read article More on this topic

Blog Post

Ashoka Mody
Guntram B. Wolff

Still vulnerable: the euro area’s small and medium-sized banks

In our recent research we show that the small and medium-sized banks (SMBs) – and among them the unlisted banks – remain under considerable stress.

By: Ashoka Mody and Guntram B. Wolff Topic: Finance & Financial Regulation Date: August 14, 2015
Read article More on this topic More by this author

Blog Post

Jérémie Cohen-Setton

The decline in market liquidity

Has it become harder for buyers and sellers to transact without causing sharp price movements?

By: Jérémie Cohen-Setton Topic: Finance & Financial Regulation Date: August 12, 2015
Read article Download PDF More on this topic

Working Paper

The Vulnerability of Europe's Small and Medium-Sized Banks

The Vulnerability of Europe's Small and Medium-Sized Banks

Stress tests show significant weaknesses in Europe's small and medium-sized banks. Strengthening the banking system is important to achieve a sustainable recovery because it will revitalise credit to the healthier segments of the economy. But instead of emphasising bank recapitalisation, we believe the task is to shrink the banking sector to a healthier core.

By: Ashoka Mody and Guntram B. Wolff Topic: Finance & Financial Regulation Date: July 15, 2015
Read article More by this author

Blog Post

Alicia García-Herrero

China's stock market falling off a cliff: Why, and why care?

Spurred by interventions from Chinese authorities, the Chinese stock market was rallying. However, the recent sell-off has wiped out one third of China’s stock market value. Why is this happening and what does it mean for the global economy?

By: Alicia García-Herrero Topic: Finance & Financial Regulation, Global Economics & Governance Date: July 9, 2015
Read article Download PDF

Working Paper

pad_200_283_The_political_economy_of_financial_crisis_policy_COVER_02

The political economy of financial crisis policy

Government intervention to stabilise financial systems in times of banking crises ultimately involves political decisions. This paper sheds light on how certain political variables influence policy choices during banking crises and hence have an impact on fiscal outlays. 

By: Mícheál O’Keeffe and Alessio Terzi Topic: European Macroeconomics & Governance, Finance & Financial Regulation Date: July 7, 2015
Read about event More on this topic

Past Event

Past Event

Capital requirements and loss absorbing capacity for large banks

What kind of structural and behavioral changes can the EU implement in order to prevent another banking crisis? How can EU policies and institutions maintain an environment that is conducive to financially stable business practices?

Topic: Finance & Financial Regulation Date: July 7, 2015
Read about event More on this topic

Upcoming Event

28 
Oct
2015
08:15

Financial Stability Conference 2015

How to design the Future Financial System? Resolution Framework, Crisis Prevention and Capital Markets Union

Topic: Finance & Financial Regulation
Read about event

Past Event

Past Event

How can development banks best support growth in Central, Eastern and South Eastern Europe?

European Macroeconomics & Governance

Topic: Finance & Financial Regulation, Global Economics & Governance Date: June 2, 2015
Read article Download PDF More by this author

Essay / Lecture

Europe’s radical banking union

Europe’s radical banking union

Bruegel scholar Nicolas Véron argues in this thought-provoking essay that banking union ultimately enabled the European Central Bank’s announcement that it would buy large quantities of government bonds if needed and on the condition of a financial support programme.

By: Nicolas Véron Topic: European Macroeconomics & Governance, Finance & Financial Regulation Date: May 5, 2015
Read article Download PDF More on this topic

Policy Contribution

Capital Markets Union: a vision for the long term

Capital Markets Union: a vision for the long term

This Policy Contribution presents facts about EU capital markets, issues that should be taken into account in the development of CMU policy, corresponding policy options over the medium to long term and suggestions for policy implementation and sequencing.

By: Nicolas Véron and Guntram B. Wolff Topic: Finance & Financial Regulation Date: April 23, 2015
Load more posts