Policy portal Stability & supervision

When trust in the financial system disappears, panic sets in: fire sales of financial assets and bank runs can make the entire system collapse. Taxpayers are forced to bail out “too-big-to-fail” institutions to protect essential economic functions (deposits, credit, payment systems).

Mitigating implicit “moral hazard” requires sound prudential policies protecting essential banking services from excessive risk-taking and maintaining adequate capital levels to cover possible losses. Well-resourced, and independent supervision is also key. Finally, prudential regulation must also respond to new risks related to digitalisation (see “Digital Finance”) and climate change (see climate risk under “Sustainable Finance”).

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162 PUBLICATIONS

Position paper

Resilient banks, resilient economy

Position paper

Securitisation and capital requirements for European insurers – Part II

Balancing prudential treatment and policy objectives: why the proposed recalibration of Solvency II would increase risk
Consultation response

Finance Watch response to the European Commission call for feedback on Draft Solvency II Delegated Regulation

Position paper

Securitisation and capital requirements for European insurers

An introduction to securitisation in insurance and the prudential treatment of insurers’ securitisation investments
Consultation response

Response to Commission consultation on the market risk prudential framework

Consultation response

Finance Watch responds to Commission’s call for evidence – Communication on European Savings and Investments Union

Consultation response

Addressing challenges in the securitisation framework – Finance Watch response to Commission Consultation

Consultation response

Addressing systemic risks and regulatory gaps in non-banking financial institutions – Finance Watch response to Commission Consultation

Position paper

Can Securitisation Reboot the Capital Markets Union? The limits of recent policy proposals to ‘revive’ the market for asset-backed securities in Europe

Securitisation, which played a major role in the 2008-09 financial crisis, is being revisited as a potential tool to boost bank lending and deepen capital markets. Finance Watch’s latest position paper cautions...
Position paper

Introduction to Securitisation: Structures, regulation and market for asset-backed securities in the EU

As securitisation returns to the EU policy agenda, this position paper examines how it functions and its current role within the financial sector. This overview aims to provide a foundation for assessing...
Report

Report – Lost Momentum: The Evolution and Challenges of Basel III

Finance Watch examines the progress and challenges of the Basel III framework and addresses the looming risks to global financial stability. The report urges policymakers not to withdraw from international cooperation, but...
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