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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8 PUBLICATIONS

Consultation response

Response to the European Commission’s consultation on State Aid for Banks in Difficulty

Response to the European Commission’s consultation on State Aid for Banks in Difficulty
Position paper

Three reforms to strengthen the Banking Union and the euro area

As a complement to a hearing held on 7 November 2019 by MEP Pedro Marques as rapporteur for the Banking Union Annual Report, Finance Watch published a technical brief on the financial architecture of the Euro Area.
Three reforms to strengthen the Banking Union and the euro area
Speech

Speech at the EC public hearing on the Call for Evidence – A review of the EU regulatory framework for financial services

Finance Watch’s Secretary General, Christophe Nijdam, gave a speech at the European Commission’s public hearing on the Public hearing on the “Call for Evidence on the EU regulatory framework for financial services – understanding the interactions and cumulative impact of legislation” on 17 May 2016. Download the opening statement (pdf) Watch the video of Christophe Nijdam’s speech (15 minutes): Key points: The financial crisis was caused by too little regulation, not too much. There is no trade-off between economic growth and financial stability. It is too soon to review regulation that has not been fully implemented. Prudential reforms have not delivered economic and financial stability or clear and simple rules, or restored trust, for example: Tier 1 bank capital is too complex...
Speech at the EC public hearing on the Call for Evidence – A review of the EU regulatory framework for financial services
Factsheet

Cheat sheet: What is Banking Union (SRM and SSM)?

Background; Actions of Finance Watch; Key risks; and our Publications on this dossier.
Cheat sheet: What is Banking Union (SRM and SSM)?
Policy brief

Finance Watch Policy Brief “Structural reform to refocus banks on the real economy”

Therefore the Commission’s proposed Regulation should be on top of the Council and new Parliament’s agenda.” Finance Watch Policy Brief “Structural reform to refocus banks on the real economy”(pdf, 10 pages)
Finance Watch Policy Brief “Structural reform to refocus banks on the real economy”
Report

“Europe’s banking trilemma” – a report on Banking Union and bank structure reform

This report on Banking Union and bank reform in the EU, “Europe’s banking trilemma” [click to download], concludes that, despite its intention, Banking Union will fail to prevent European citizens from bearing the losses of failed banks in the event of a systemic banking crisis unless there are meaningful structural and capital reforms to Europe’s largest banks.
“Europe’s banking trilemma” – a report on Banking Union and bank structure reform
Consultation response

Finance Watch response to EC Consultation on Banking Structure

Finance Watch response to EC Consultation on Banking Structure
Position paper

Bank structures and Banking Union: Presentation at Finethikon

Presentation by Finance Watch Secretary General Thierry Philipponnat at the Third Congress on Finance Ethics, the “Finethikon”, 26 October 2012, about the problems of moral hazard and banking structure in repation to EU plans for Banking Union. Press release 29 October 2012 
Bank structures and Banking Union: Presentation at Finethikon

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