Ismael Ahmad Fontán, Thorsten Beck, Katia D'Hulster, Pamela Lintner, Filiz Unsal, 20 May 2019

The banking systems in Central, Eastern, and South Eastern Europe are dominated by subsidiaries of multinational banks, many with parent banks from the EU. This column analyses the effects of regulatory and supervisory changes within the EU and euro area on host regulation and supervision in these countries and on their cooperation with home supervisors and resolution authorities in Western Europe. It also offers some recommendations for authorities both at the EU level and in the small host countries.

Dirk Schoenmaker, Nicolas Véron, 25 June 2016

The new European banking supervision system, the Single Supervisory Mechanism, has been operating since 2014. Based on data analysis, interviews with officials and market participants, and nine country-specific studies, this column argues that the mechanism is broadly effective and, in line with the claim often made by its leading officials, tough and fair. However, there are significant areas for future improvement.

Xavier Vives, 17 March 2015

The 2007–08 crisis revealed regulatory failures that had allowed the shadow banking system and systemic risk to grow unchecked. This column evaluates recent proposals to reform the banking industry. Although appropriate pricing of risk should make activity restrictions redundant, there may nevertheless be complementarities between these two approaches. Ring-fencing may make banking groups more easily resolvable and therefore lower the cost of imposing market discipline.

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