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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12 PUBLICATIONS

Report

“A missed opportunity to revive “boring” finance?” – Position paper on long term financing, securitisation and securities financing

Finance Watch position paper on the European Commission’s long term financing initiative, focussing on securitisation and securities financing: “A missed opportunity to revive “boring” finance?”
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).
Consultation response

Finance Watch response to the public consultation on the Europe 2020 strategy

Open letter

Open letter to Michel Barnier on completion of his mandate

Open letter from Finance Watch’s Acting Secretary General, Benoît Lallemand, to Michel Barnier, the outgoing European Commissioner for Internal Market and Services, on the completion of Mr Barnier’s mandate.
Policy brief

Finance Watch Policy Brief “Should precautionary recapitalisations make taxpayers nervous?”

This policy note looks at what could happen if the ECB’s comprehensive assessment reveals capital shortfalls at banks that cannot then raise funds on the market.
Consultation response

Finance Watch response to the public consultation on stakeholder consultation guidelines

Position paper

Finance Watch note “Too-big-to-fail in the EU”

Finance Watch has published a note (pdf, 12 pages – this note also exists in German and in French) that provides an overview of the EU financial regulations (passed or still in discussion) related to the too-big-to-fail issue and an assessment of what remains to be done, in light of three major questions:
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)
Consultation response

Finance Watch response to consultation on modalities for investment protection and ISDS in TTIP

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