Title: Coordination of Banking Supervision in the EU
Abstract: Banking supervision offers a public good - financial stability for the banking system. EU policies to mitigate the effects of the global economic crisis do not deliver the predicted results (semi-public good). Individual Member States take ad hoc own measures to rescue assets and activities in their territory, whereby the effects of the crisis are transferred to other Member States and financial sectors.
The current EU policy is based on a coordinated approach whereby supervisory powers are delegated to pan-European bodies. Competent authorities retain their powers vis-a-vis financial intermediaries that are systemically important to the national economy, taking into account the secondary effects on other Member States. Memoranda of Understanding have been replaced by ex ante arrangements for ex post sharing of financial burdens in cross-border illiquidity.
Publication Year: 2016
Publication Date: 2016-01-01
Language: en
Type: article
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