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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- Aleksandra Palinska
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- Private: Rainer Lenz
- The European Consumer Organisation (BEUC)
- The Finance Watch team
- Thierry Philipponnat
- Thomas Larible
- Vincent Vandeloise
9 PUBLICATIONS
Joint Letter – Priorities on banking regulation, simplification and the assessment of the competitiveness of the EU banking sector
Balancing investment growth and investor protection to support long-term innovation
Finance Watch response to the Commission’s targeted consultation on the competitiveness of the EU banking sector
Report – Systemic risk from shadow banking
Finance Watch response to the call for evidence on EU venture capital reforms
Finance Watch response to Commission call for evidence on competitiveness in the single banking market
Improving supervisors’ assessment of bank risk management in Europe
Finance Watch response to the Commission Consultation on the implementation of the new market risk framework under Basel III standards
The false trade-off defining Germany’s CRD transposition (Bundestag Finance Committee hearing)
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