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

Speech

Public hearing on the EU’s Macro-prudential Policy

Finance Watch Secretary General, Christophe Nijdam, spoke on a panel at the European Commission’s Public hearing on the EU’s Macro-prudential Policy in Brussels, 07 November 2016
Speech

Speech at the EP Public hearing on Securitisation

Finance Watch’s Secretary General Christophe Nijdam made a statement on the Public hearing on Securitisation, organised by the Economic and Monetary Affairs (ECON) Committee at the European Parliament, on 13 June 2016.
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...
Open letter

Need for sustainable prosperity comes first

Letter to the Financial Times, 15 October 2015
Speech

Statement at ECON hearing on Stocktaking and challenges of the EU Financial Regulation

Finance Watch’s Secretary General, Christophe Nijdam, was invited to speak at the European Parliament’s ECON Committee public hearing on “Stocktaking and challenges of the EU Financial Services Regulation: impact and the way forward towards a more efficient and effective EU framework for Financial Regulation and a Capital Markets Union”.

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