scholarly journals Does the intensity of prudential regulation affect banks? Evidence from the 2007-2009 crises.

2012 ◽  
Vol 1 (3) ◽  
pp. 14-26 ◽  
Author(s):  
Isabel Argimon ◽  
Gerard Arqué Castells ◽  
Francesc Rodríguez Tous
Keyword(s):  
Capital Requirements ◽  
Capital Regulation ◽  
Risk Sensitivity ◽  
The European Union ◽  
Regulatory Capital ◽  
European Banks ◽  
Observed Behaviour ◽  
The Right ◽  
Yearly Data ◽  
Do So

The main objective of this research is to gather empirical evidence on the effects of more or less stringency and more or less risk sensitivity in regulatory capital requirements on the observed behaviour of European banks during the initial years of the financial crisis. To do so, we use the indices built in Argimón and Ruiz (2010), which capture such characteristics of capital regulation. We test their incidence using changes in yearly data for individual banks for 25 countries of the European Union covering the period 2007-2009. Our results show that more stringency and risk sensitivity in capital regulation resulted in higher capital increases, with limited effect on risk taking. However, for well capitalized banks, higher risk sensitivity resulted in higher capital and higher risk, thus requiring striking the right balance, so as to lead to increased stability.

scholarly journals The Contribution of ESG Information to the Financial Stability of European Banks

2021 ◽  
Vol 66 (3) ◽  
pp. 429-450
Author(s):  
Balázs Tóth ◽  
Edit Lippai-Makra ◽  
Dániel Szládek ◽  
Gábor Dávid Kiss
Keyword(s):  
Financial Stability ◽  
Stock Exchange ◽  
Trade Association ◽  
The European Union ◽  
Regulatory Capital ◽  
European Free Trade Association ◽  
European Banks ◽  
Lending Institutions ◽  
The Relationship ◽  
Positive Effect

Nowadays more and more economic actors publish information regarding sustainability, through economic (E), social (S), and governance (G) performance. In the case of banks, ESG performance is important as they affect most of the industries through their investments and loans. In this research our aim is to investigate the relationship between financial stability and ESG performance. We applied panel regressive methods during the analysis. The sample consisted of stock exchange listed lending institutions (243 banks) from the European Union (EU) and the European Free Trade Association (EFTA). Our results show that ESG performance reduced the ratio of non-performing loans significantly. Furthermore, the positive effect of regulatory capital has been confirmed. Consequently, we can assert that the economic, social, and governance performance have beneficial impacts on financial stability. Therefore, the consideration of these pieces of information should be important for the investors and the regulators as well.

Two Types of Regulatory Competition: Competitive Federalism Versus Reflexive Harmonisation. A Law and Economics Perspective on Centros

1999 ◽  
Vol 2 ◽  
pp. 231-260 ◽  
Author(s):  
Simon Deakin
Keyword(s):  
Law And Economics ◽  
Capital Requirements ◽  
Company Law ◽  
Regulatory Competition ◽  
The European Union ◽  
Legal Rules ◽  
Minimum Capital ◽  
The Uk ◽  
The Right ◽  
Competitive Federalism

There is a growing debate about the desirability of allowing greater scope for regulatory competition inside the European Union. The argument for doing so is that competition between the Member States in the production of legal rules will lead to greater economic efficiency than can be achieved through the harmonisation of standards. The Court’s ruling in Centros appears to mark a significant move in the direction of inter-state competition in company law. In deciding that a company founded by Danish citizens in the UK, thereby avoiding Danish minimum capital requirements, could not be denied the right to register an overseas branch in Denmark for the purposes of trading there, the Court has rekindled a long-running debate about the siège réel doctrine.

Two Types of Regulatory Competition: Competitive Federalism Versus Reflexive Harmonisation. A Law and Economics Perspective on Centros

1999 ◽  
Vol 2 ◽  
pp. 231-260 ◽  
Author(s):  
Simon Deakin
Keyword(s):  
Law And Economics ◽  
Capital Requirements ◽  
Company Law ◽  
Regulatory Competition ◽  
The European Union ◽  
Legal Rules ◽  
Minimum Capital ◽  
The Uk ◽  
The Right ◽  
Competitive Federalism

There is a growing debate about the desirability of allowing greater scope for regulatory competition inside the European Union. The argument for doing so is that competition between the Member States in the production of legal rules will lead to greater economic efficiency than can be achieved through the harmonisation of standards. The Court’s ruling inCentrosappears to mark a significant move in the direction of inter-state competition in company law. In deciding that a company founded by Danish citizens in the UK, thereby avoiding Danish minimum capital requirements, could not be denied the right to register an overseas branch in Denmark for the purposes of trading there, the Court has rekindled a long-running debate about thesiège réeldoctrine.

scholarly journals Investors’ expectations around quantitative easing: does liquidity injection affect European banks equally?

2021 ◽  
Author(s):  
Sara Longo ◽  
Antonio Parbonetti ◽  
Amedeo Pugliese
Keyword(s):  
Financial Stability ◽  
Global Financial Crisis ◽  
Capital Requirements ◽  
Quantitative Easing ◽  
Regulatory Capital ◽  
Fine Grained ◽  
Asset Portfolio ◽  
European Banks ◽  
The Global Financial Crisis

AbstractThe role of liquidity in the banking industry is increasingly under the spotlight since the Global Financial Crisis (GFC) in 2007. Prior evidence offers contrasting findings on the role played by liquidity in banks: whilst it ensures systemic financial stability, at the same time it raises agency costs. Notwithstanding this, European banks benefited from a generous liquidity injection following the launch of the Quantitative Easing (QE) programme by the European Central Bank (ECB) in 2015–2016. We leverage on the release of the QE and investigate whether investors’ reactions to the announcements of new liquidity injections vary according to bank-level characteristics of the European banks: namely, their financial soundness, asset portfolio quality and the level of transparency. Our findings document an overall negative market reaction to the QE announcements; at a more fine-grained level of analysis we highlight that banks falling short of the regulatory requirements are not expected to benefit from additional liquidity. This study contributes to the literature on the role of liquidity in banks by showing important boundary conditions to the beneficial role of liquidity in banks, that is—because of the regulatory capital requirements—liquidity is only valuable to investors if it can be reinvested once constraints are overcome.

scholarly journals Does Board Collective Suitability Affect Performance and Risk? Evidence from European Banks

2022 ◽  
Vol 14 (2) ◽  
pp. 1
Author(s):  
Maria Luisa Di Battista ◽  
Laura Nieri ◽  
Marina Resta ◽  
Alessandra Tanda
Keyword(s):  
Linear Combination ◽  
Boards Of Directors ◽  
Capital Requirements ◽  
Self Organizing Maps ◽  
Time Commitment ◽  
Performance Risk ◽  
Non Linear ◽  
European Banks ◽  
And Performance ◽  
The Right

This paper analyzes the features of the boards of large listed European banks and their degree of “collective suitability” as formalized by the Capital Requirements Directives (CRD4) and evaluates whether closer proximity to the collective suitability regulatory paradigm affects banks’ performance, risk and risk-adjusted performance. We leverage Self-Organizing Maps (SOMs) to analyze board features and suitability (i.e. competence, diversity, independence and time commitment) jointly as a multifaceted, non-linear combination of all board variables, rather than evaluating the single variables individually as in the mainstream literature. Using a hand-collected dataset based on numerous features of boards of directors, we find that European banks’ boards can be classified in four different board archetypes characterized by different degrees of collective suitability. Our findings also suggest positive relationships between the degree of collective suitability and performance, risk-adjusted performance, and risk, confirming that the regulatory provisions on governance are going in the right direction, enhancing effective and prudent management.

scholarly journals On the Duty to Implement European Framework Agreements: Lessons to be Learned from the Hairdressers Case

2019 ◽  
Author(s):  
Filip Dorssemont ◽  
Klaus Lörcher ◽  
Mélanie Schmitt
Keyword(s):  
European Union ◽  
Collective Bargaining ◽  
European Commission ◽  
The European Union ◽  
Framework Agreement ◽  
The Social ◽  
Social Partners ◽  
The Right ◽  
Do So

Abstract In this article, the authors assess the decision of the European Commission, in March 2018, not to implement a European Framework agreement concluded at sectoral level (the Hairdressers Agreement), despite a joint request to do so from the signatory parties. They argue that the decision was not consistent with the criteria relied on by the Commission to make it. In particular, the Commission’s refusal was contrary to the formal obligation enshrined in Article 155(2) Treaty on the functioning of the European Union (TFEU) to table a proposal to turn an Agreement of this kind into a Directive. Their analysis is based on, among other things, the duty to respect the autonomy of the social partners in Article 152 TFEU, and the recognition of the right to collective bargaining in Article 28 CFREU.

Heinrich von Kleist and the Right to War

Romanticism ◽  
2018 ◽  
Vol 24 (3) ◽  
pp. 245-254
Author(s):  
Jan Mieszkowski
Keyword(s):  
Heinrich Von Kleist ◽  
The Right ◽  
Do So

This essay explores the conceptualization of warfare in Romanticism. The focus is on two plays by Heinrich von Kleist, Penthesilea and Prince Friedrich von Homburg. I begin by discussing Carl von Clausewitz's influential understanding of conflict and the problems that arise when he attempts to explain the interdependence of warring parties. I go on to argue that in Kleist's dramas war is a competition between different languages of authority. When no coherent paradigm of agency emerges from this contest, the right to wage war is revealed to be anything but a guarantee that one knows how to do so.

The right to appeal to the European Court of Human Rights

2020 ◽  
Author(s):  
Yuliya Samovich
Keyword(s):  
Human Rights ◽  
Case Law ◽  
Legal Regulation ◽  
The European Union ◽  
Educational Organizations ◽  
European Court ◽  
Protection Of Human Rights ◽  
Judicial Procedure ◽  
The Right ◽  
Judicial Protection

The manual is devoted to making individual complaints to the European Court of human rights: peculiarities of realization of the right to appeal, conditions of admissibility and the judicial procedure of the European Court of Human Rights. The author analyses some “autonomous concepts” used in the court's case law and touches upon the possibility of limiting the right to judicial protection. The article deals with the formation and development of the individual's rights to international judicial protection, as well as the protection of human rights in universal quasi-judicial international bodies and regional judicial institutions of the European Union and the Organization of American States. This publication includes a material containing an analysis of recent changes in the legal regulation of the Institute of individual complaints. The manual is recommended for students of educational organizations of higher education, studying in the areas of bachelor's and master's degree “Jurisprudence”.

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