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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26 PUBLICATIONS

Report

Report: “#10yearsAfter – Back to Business as Usual”

In its comprehensive analysis of post-crisis regulation, Finance Watch demonstrates that the opportunity for a fundamental realignment of the global financial sector has been missed and that none of the structural vulnerabilities that led to the financial crisis of 2008 have been tackled in a decisive way.
Consultation response

Response to the EC’s consultation on the “Review of the EU Macroprudential Policy Framework”

Position paper

Comments on the current debate regarding bank bail-in and recapitalisation

Finance Watch comments on the current debate regarding bank bail-in and recapitalisation.
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...
Consultation response

Response to Commission call for evidence on the regulatory framework for financial services

Factsheet

Cheat sheet: the Bank Structural Reform (BSR)

The Bank Structural Reform must separate substantially all trading – including market making and derivatives – from deposit banking activities. BSR is strongly opposed by the banking lobby and by certain member states protecting national champion banks.
Position paper

Separating fact and fiction – Note on the Bank Structural Reform

A Finance Watch note looking at some of the confusing and contradictory arguments made against regulating the structure of the largest, too-big-to-fail, too-complex-to-manage-and-regulate and too-connected-to-fail banks.
Policy brief

Finance Watch Policy Brief “Separating universal banks from too-big-to-fail banks (TBTF)”

A Finance Watch Policy Brief that illustrates the very different characteristics of Europe’s small, medium and large banks.
Speech

Evidence to ECON Committee hearing on Bank Structure Reform

2 December 2014 – Evidence to a hearing at the European Parliament’s ECON Committee on Bank Structural Reform, by Finance Watch’s Senior Policy Analyst, Paulina Przewoska.
Open letter

Bank reforms will help lift Europe’s struggling economy

Sir, The lobbying efforts against the EU’s proposal for structural reform of its largest banks are back to front (“Banks press Brussels to ditch reforms”, November 24).
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