EZ banking union with a sovereign virus

Daniel Gros, 14 June 2013

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The purpose of the proposed banking union is to de-link banks from their sovereigns.

  • Putting the ECB in charge of supervision and creating a common resolution mechanism should help.

But this is not enough.

Topics: EU institutions, Europe's nations and regions
Tags: eurozone, EZ banking union

The first step in Europe’s banking union is achievable, but it won’t be easy

Nicolas Véron, 29 October 2012

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The leaders of Eurozone countries issued an unprecedented commitment on 29 June; the statement began, “[w]e affirm that it is imperative to break the vicious circle between banks and sovereigns” (Euro Area Leaders 2012).

Topics: EU institutions, Europe's nations and regions
Tags: crisis management, ECB, EZ banking union

The first step in Europe’s banking union is achievable. But it won’t be easy.

, 1 January 1970

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The leaders of Eurozone countries issued an unprecedented commitment on 29 June; the statement began, “[w]e affirm that it is imperative to break the vicious circle between banks and sovereigns” (Euro Area Leaders 2012).

Topics: EU institutions, Europe's nations and regions
Tags: crisis management, ECB, EZ banking union

Banking union: Where we’re going wrong

Dirk Schoenmaker, 16 October 2012

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The European Commission (2012) has presented its legislative proposal for banking union whose key element is a ‘Single Supervisory Mechanism’ to be headed by the ECB, but leaves resolution and deposit insurance at the national level. Is that viable?

Topics: EU institutions, Europe's nations and regions
Tags: EZ banking union

A first step towards a banking union

Vasso P. Ioannidou, 16 October 2012

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The European Commission’s proposal in brief

Topics: EU institutions, Europe's nations and regions
Tags: EZ banking union

Five lessons from the Spanish cajas debacle for a new euro-wide supervisor

Luis Garicano, 16 October 2012

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For a financial crisis of such a magnitude that it threatens both the solvency of the Spanish state and effectively destroyed the credibility of the Spanish supervisors, it is surprising how slowly it has developed.

Topics: EU institutions, Europe's nations and regions
Tags: EZ banking union

Banking union: The view from emerging Europe

Erik Berglöf, Ralph De Haas, Jeromin Zettelmeyer, 16 October 2012

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A Eurozone-based ‘banking union’ could be crucial for the survival of the Eurozone and its future stability. It would help sever the much-feared ‘death loop’ between sovereigns that are exposed to losses in their national banking systems and banking systems directly and indirectly exposed to sovereigns.

Topics: EU institutions, Europe's nations and regions
Tags: EZ banking union

Two types of capital flight: Will a common deposit insurance help to stabilise the TARGET2 imbalances?

Frank Westermann, 16 October 2012

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A Friedman-type experiment helps a lot to illustrate the welfare implications of capital flight. Think of the owner of Spanish government bonds. Worried about default, she might want to leave the country and invest in safe assets abroad. Suppose she would put them in a backpack, take the train to Frankfurt and deposit her bonds in the safe.

Topics: EU institutions, Europe's nations and regions
Tags: deposit insurance, EZ banking union, TARGET2

The Single European Market in banking in decline – ECB to the rescue? 

Daniel Gros, 16 October 2012

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The prudential rules for banks are in principle the same throughout the EU, as they are codified by various EU directives and regulations. In reality, however, these supposedly common rules are implemented by national supervisors today in such a way as to ‘balkanise’ the Eurozone’s banking markets.

Topics: EU institutions, Europe's nations and regions
Tags: ECB, EZ banking union

Banking union in Europe and other reforms

Viral Acharya, 16 October 2012

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Many observers have rightly noted that problems in the banking system have been at the core of the ongoing European crisis. In response, policymakers in Europe have proposed a banking union. In particular, the European Commission has proposed that the ECB have broad authority over all banks within the supervisory mechanism (Veron 2012).

Topics: EU institutions, Europe's nations and regions
Tags: Banking reform, EZ banking union

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