scholarly journals Macro Prudential Supervision Tools in the European Banking System

2012 ◽  
Vol 3 ◽  
pp. 642-647 ◽  
Author(s):  
Peter Balogh
Keyword(s):  
Banking System ◽  
Prudential Supervision ◽  
European Banking

scholarly journals The Economic Crisis of 2008 and the Financial System Supervision: Towards an European Banking Union

2018 ◽  
Vol 24 (2) ◽  
pp. 45-56
Author(s):  
Evaggelia Kolovou ◽  
Grigorios Gikas ◽  
Kostantinos Kyritsis
Keyword(s):  
Banking System ◽  
Capital Requirements ◽  
Regulatory Framework ◽  
Banking Union ◽  
International Banking ◽  
Risk Capital ◽  
Prudential Supervision ◽  
European Banking Union ◽  
European Banking ◽  
The Impact

The significant repercussions of the recent crisis in the financial sector and the real economy have led to the development of policies aimed at strengthening the stability of the international banking system. Banking regulatory reforms (Basel III) improve micro-prudential supervision and involve macro-prudential supervision to avoid systemic risk. Capital requirements are tightening up and the quality of core capital is upgraded in order to provide greater coverage of losses and better risk management. In addition, a new framework for liquidity risk is introduced, as well as a complementary tool for limiting leverage. Recently, an agreement was reached in the EU to establish a Banking Union in the Eurozone, based on uniform regulation, supervision, bank clearing and deposit protection mechanisms. This framework includes a common banking capital for bank consolidation, which aims to reduce the impact on savers. This study aims to analyse the banking sector's activities and the constituent elements of the existing regulatory framework, particularly those involved in the causes of the financial crisis. It also aims to present the dimensions of the new regulatory framework for joint supervision leading to the European Banking Union and to analyse the pillars that form it, even though they are still in progress. The analysis will also build on the experiences from the recent crisis, in order to reach clear conclusions about the necessity and role of the Banking Union.

Same Story, Different Place?

2018 ◽  
Author(s):  
Viral V. Acharya ◽  
Tim Eisert ◽  
Christian Eufinger ◽  
Christian Hirsch
Keyword(s):  
Banking Sector ◽  
Debt Crisis ◽  
Banking System ◽  
Policy Implications ◽  
Balance Sheets ◽  
System P ◽  
Loan Supply ◽  
European Banking ◽  
European Debt Crisis

This chapter compares the recapitalizations of the Japanese banking sector in the 1990s with those in the ongoing European debt crisis. The analysis points to four main policy implications. First, recapitalizing banks by insuring or purchasing troubled assets alone is not likely to solve the problem of banks’ weak capitalization, as this measure is not able to adjust the extent of the recapitalization to the banks’ specific needs. Second, the amount of the recapitalization should be based on actual capital shortages and not risk-weighted assets to avoid banks decreasing their loan supply. Third, banks should face restrictions regarding the amount of dividends they are allowed to pay out. Finally, banks must be induced to clean up their balance sheets and reduce the amount of bad (non-performing) loans to rebuild confidence in the European banking system.

scholarly journals Crisis Management and Resolution for a European Banking System

2010 ◽  
Vol 2010 (070) ◽  
pp. 1
Author(s):  
Daniel Hardy ◽  
Luis Cortavarria-Checkley ◽  
Alessandro Giustiniani ◽  
Wim Fonteyne ◽  
Wouter Bossu ◽  
...  
Keyword(s):  
Crisis Management ◽  
Banking System ◽  
European Banking

scholarly journals Ranking of EU national banking systems using multi-criteria analysis in the light of Brexit

2017 ◽  
Vol 67 (4) ◽  
pp. 473-509 ◽  
Author(s):  
Magdalena Radulescu ◽  
Aleksandra Fedajev ◽  
Djordje Nikolic
Keyword(s):  
System Analysis ◽  
Banking System ◽  
Entropy Method ◽  
Banking Union ◽  
Policy Makers ◽  
Promethee Ii ◽  
Banking Systems ◽  
Eu Member States ◽  
European Banking ◽  
Multi Criteria Analysis

In order to define and implement the most effective measures to overcome the difficulties of the post-crisis period, the policy-makers of ECB must identify not just main weaknesses of each banking system, but their strong points also. This requires the application of multi-criteria analysis, considering that policy-makers need to take into account a number of different aspects that, on the whole, indicate the quality of the banking system. Our aim is a comparative analysis of European banking systems right after the Brexit moment and within the framework of the tight new Basel III regulations. In this paper, we have ranked the banking systems of the 28 EU member states using multi-criteria analysis, specifically the PROMETHEE II method. The use of the PROMETHEE II method in combination with the entropy method offers a comprehensive insight into the banking system of each member state, given that the observed countries are ranked according to 9 conflicting criteria that are mostly used in banking system analysis. Our analysis shows that the banking systems in Central and Eastern Europe are the best performers, while the EMU’s developed banking systems such as the German, Italian, British, and French one are positioned among the last ranked. The Portuguese and Greek banking systems are, as expected, ranked in the last positions in our list. The obtained results also pointed out that the ECB should change its approach to the management and further development of a European Banking Union.

scholarly journals Geographical risk of money laundering in the European banking system

2012 ◽  
Vol 3 (3) ◽  
pp. 103-123 ◽  
Author(s):  
Patrycja Chodnicka
Keyword(s):  
Money Laundering ◽  
Banking System ◽  
Transitional Period ◽  
Gdp Per Capita ◽  
Rule Based ◽  
Maximum Value ◽  
European Banking ◽  
Per Capita ◽  
Rule Based Approach ◽  
Financial Intelligence

The issue of risk of money laundering in the European banking system was presented in the article. It describes two approaches used by regulators to prevent the mentioned phenomenon: the rule-based approach and the risk-based approach. The author also identified strategies which are used by banks as entities functioning to maximize profit in the conditions of having full and incomplete information by the FIU. Then, the European countries were analyzed with respect to participating reports on suspicious transactions in the total number of reports, which are sent by all the obligated entities to the national financial intelligence units. We also verified the value of two indicators: the value of above-threshold transactions and the value of financial penalties, which are imposed on banks for failure to comply with the rules on anti-money laundering. Some hypotheses were examined. With the increase in GDP per capita grows the maximum value of the mentioned financial penalties grows. There is a negative correlation between the share of banks in the total of reported suspicious transactions and GDP per capita, which is an effect of extending the list of the obligated entities and the lack of the differentiation of sanctions in the various categories of such entities. In connection with the applying of transitional period for implementing the directive by the banks, there is an inverse relationship between the amount of the penalty, and the number of suspicious transactions reports.

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