Jon Danielsson, 15 November 2017

Artificial intelligence is increasingly used to tackle all sorts of problems facing people and societies. This column considers the potential benefits and risks of employing AI in financial markets. While it may well revolutionise risk management and financial supervision, it also threatens to destabilise markets and increase systemic risk.

Donato Masciandaro, Davide Romelli, 26 April 2015

In the aftermath of the Global Crisis, many countries increased their central banks’ involvement in financial supervision. This column uses a novel dataset to argue that financial crises episodes significantly increase the probability of reforms in the financial structure. More interestingly, the authors find evidence of a ‘bandwagon effect’ by showing that politicians are more likely to undertake reforms when their peers do so. 

The Editors, 20 December 2013

Maintaining financial stability is a major concern and central banks have been increasingly involved in assuring it. This column introduces a CEPR Policy Insight written by Italy’s central bank governor on the post-Crisis role of central banks in financial regulation and supervision.

Sylvester Eijffinger, 24 October 2009

Governments are restructuring their financial supervision systems. This column warns that the proposed new structure for European financial supervision is poorly coordinated and will not help in a systemic crisis. It discusses how the ECB might coordinate macro-prudential supervision in the euro area.

Donato Masciandaro, María Nieto, Marc Quintyn, 11 August 2009

The impact of the current financial crisis on EU members has introduced a sense of urgency to the coordination/centralization of financial supervision debate. This CEPR Policy Insight on the micro-prudential supervisory framework.

Donato Masciandaro, María Nieto, Marc Quintyn, 11 August 2009

The financial crisis introduced a sense of urgency to the debate on the desirable structure of financial supervision in the EU. This column, which accompanies a new CEPR Policy Insight, provides two policy recommendations. First, policymakers could consider the harmonisation of supervisors´ governance arrangements. Second, consideration should be given to the introduction of a European mandate for national supervisors in order to better align incentives in the EU supervisory framework for micro-prudential supervision.

Zsolt Darvas, Jean Pisani-Ferry, 23 January 2009

The financial crisis is now hitting several of the non-euro-area new member states hard, highlighting the shortcomings of Europe’s monetary architecture. Crisis management in the euro area has had the unintended consequence of putting non euro-area new member states at disadvantage. Without decisive action, a new political and economic divide within Europe may emerge.

Hans-Werner Sinn, 17 December 2008

This column says the core of the crisis lies in the legal provisions of limited liability. Europe and the world need stricter rules for financial traffic which are vital for the functioning of the financial capital markets.

Carmine Di Noia, 20 October 2008

The current crisis has exposed the poor organisation of financial supervisory responsibilities, as central banks, EU ministers, and treasury authorities fought to respond appropriately. This column argues for the reorganisation of the European financial regulatory apparatus using a “four peaks” approach that horizontally divides responsibilities according to objectives.

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