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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5 PUBLICATIONS

Position paper

Comment on the final report of the European Commission’s Expert Group on Corporate Bonds

Finance Watch and BETTER FINANCE comment on the final report of the European Commission’s Expert Group on Corporate Bonds
Report

The Capital Markets Union and sustainability: recommendations for the mid-term review

This new report from six civil society groups (WWF, E3G, Finance Watch, Friends of the Earth Europe, ShareAction and actionaid) recommends ways to integrate sustainability goals in the Capital Markets Union, in response to the Commission’s mid-term review of the CMU.
Consultation response

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

Consultation response

Response to first ESA discussion paper on PRIIPs Level 2

Consultation response

Finance Watch response to ECON coherence questionnaire

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