How Has the EU Protected Depositors in the Financial Crisis?

2014 ◽  
Vol 16 ◽  
pp. 289-312
Author(s):  
Niall J Lenihan

AbstractThis chapter addresses the question of how the EU has protected depositors in the financial crisis. The chapter will discuss (1) the impact in Europe of the US system for the protection of depositors, (2) the important changes made to the EU Deposit Guarantee Schemes Directive, first in 2009 in response to the 2007 deposit run on Northern Rock, and then again in 2014 in response to the financial crisis, (3) the decision of the EFTA Court regarding the scope of Iceland’s obligations under the EU Deposit Guarantee Schemes Directive, following the collapse of the Icelandic banking system in 2008, and (4) the introduction of a powerful depositor preference rule throughout the EU, in response to the resolution of the Cypriot banking system in 2013. This chapter argues that the EU has responded to the impact of the financial crisis on bank depositors by enhancing the legal protections available to depositors.

2021 ◽  
Vol 21 (4) ◽  
pp. 772-784
Author(s):  
Yury V. Borovsky

In the early 2020s the worlds transition from carbon-intensive to climate-neutral energy use has already become a discernible and a difficult-to-reverse process. With Joe Bidens election as US president, the United States have returned to the Paris Climate Agreement and have become a key driver of this process (along with the EU and China). As a result, the international community has reached a consensus on the ongoing energy transition. This process will require considerable effort and may take several decades. Nevertheless, the impact of energy transition on traditional approaches to energy security, which emerged largely as a result of the global oil crises of the 1970s and 1980s and are centered around the supply of fossil fuels, is already a relevant research topic. This problem is examined relying on the relevant terminological, theoretical and factual material. The article concludes that energy transition will ultimately undermine the carbon paradigm that has underpinned energy security policies since the 1970s. Rapid development of renewable and other low-carbon energy sources will certainly remove key energy security risks of energy importers and, possibly, allow them to achieve energy independence. However, a post-carbon era may also generate new risks. For countries that rely heavily on oil, gas and coal exports, energy transition will result in the loss of markets and revenues. It may present an energy security threat for them as well as it will require a costly and technologically complex process of the energy sector decarbonization. Some exporters, especially those with high fuel rents and insufficient financial reserves, may face serious economic and social upheavals as a result of energy transition. The EU and the US energy transition policies reflect provisions of all three fundamental international relations theoretical paradigms, including realism. This means that the EU and the US policy, aimed at promoting climate agenda, may be expected to be rather tough and aggressive. China as the third key player in energy transition is still following a liberal course; however, it may change in the future.


2010 ◽  
Vol 6 (4) ◽  
Author(s):  
Todd Bridgman

The global financial crisis (GFC) which began in 2007 with a liquidity squeeze in the US banking system and which continues to play out today has affected us all, whether through the collapse of the finance company sector, rising unemployment, falling housing prices or the recession which followed the initial market crash. The speed and scope of the crisis surprised most experts – policy makers included. Specialists from a myriad of disciplines, from economics and finance to risk management, corporate governance and property, are trying to make sense of what happened, why it happened and what it means for us now and into the future. Members of the public rely on the news media to keep them informed of the crisis as it unfolds and they rely on experts to translate these complex events into a language which they can understand. The GFC is educating us all, and it is important that we all learn from it to avoid making the same mistakes again. 


Bankarstvo ◽  
2020 ◽  
Vol 49 (4) ◽  
pp. 68-87
Author(s):  
Milena Lazić ◽  
Ksenija Zorčić

Having drawn attention to the existing banking regulation issues, the Global Financial Crisis also raised awareness of the importance of depositors' confidence for the stability of the financial system, and brought the role and significance of the deposit guarantee schemes to the fore. Serbian economy started experiencing its effects in Q4 2008, in parallel with the global spreading of the crisis. This paper focuses on the fluctuations in deposit levels and structure in the Serbian banking system, between 2008 and 2019. It also aims to underscore the importance and development perspectives of the Serbian deposit guarantee scheme.


2017 ◽  
Vol 14 (3) ◽  
pp. 249-258 ◽  
Author(s):  
Andrea Quintiliani

This paper focuses on bank-firm relationship in an economic deeply changing environment. The objectives of the paper are two-fold: to understand, compared to the overall banking system, if the lending activities and economic-financial performances of Italian local banks have changed after the outbreak of the financial crisis; and to understand what are the conditions that allow to develop a model of a local bank capable of supporting the development routes of SMEs, by an appropriate risk/return profile. In order to answer the first research question, the paper presented an empirical analysis, covering the period 2007-2011, of Italian Cooperative Credit Banks (a particular category of local banks) compared with the system of bank groups with operability spread over much of the Italian territory and not. The empirical comparative analysis has the aim to see the effects of the crisis on the relationship bank-firm through the reading of the impact on the dynamics of lending and on the profiles of structure, riskiness, profitability and efficiency of the banks under examination. In order to provide an answer to the second research question, the paper provides some insight of evolutionary nature reflection in the bank-firm relationship. In accordance with the doctrinal postulates of the relationship lending the empirical analysis shows how the financial then real crisis has not induced Cooperative Credit Banks to restrict credit to local firms. The survey evidences have however highlighted some critical elements that are reflected inevitably on the local bank’s risk-return profile. Based only on quantitative data of statement, the empirical analysis represents a limit in this kind of research. This paper is useful to stimulate the debate of experts as well as to focus on the studies of local banks in particular in the light of their anti-cyclic role. Even if abounding in subjects about local banks and relationship lending literature faces only marginally the effects of global crisis on business profiles of local banks.


2015 ◽  
Vol 59 (11) ◽  
pp. 31-37
Author(s):  
N. Arbatova

The Euro-Atlantic relations after the end of the Cold war have been strongly influenced by the impact of three interrelated crises: the existential crisis of NATO, the world economic and financial crisis, and the crisis in the Russia-West relations. The end of bipolarity has changed the threat environment and revealed how different alliance members formulate their threat perception and foreign policy interests. Europe stopped to be the US foreign policy priority. The US pivot to Asia has raised European concerns about American commitments to collective defense. The removal of the threat of a global conflict resulted in the EU initiatives aimed at promoting integration in the field of common security and defense policy (CSDP). Even though the US has officially welcomed a stronger European pillar in NATO, it has become concerned about new approaches that could divide transatlantic partnership and take resources away from military cooperation. At the same time the unilateralist preferences of the Bush administration generated deep political divisions between the United States and the European Union. The world economic and financial crisis contributed to a dangerous gulf between American and European defense spending. The US has complained about the tendency of the alliance’s European members to skimp on defense spending and take advantage of America’s security shield to free ride. In the absence of a clear external threat NATO tried to draft new missions, which were found in NATO’s expansion to the post-Communist space and Alliance’s out of area operations. But these new missions could not answer the main question about NATO’s post-bipolar identity. Moreover, the Kosovo operation of NATO in 1999 fueled Russia’s concerns about NATO’s intentions in the post-Soviet space. The creeping crisis in the Russia-West relations resulted in the Caucasus and Ukrainian conflicts that provided kind of glue to transatlantic relations but did not return them to the old pattern. There can be several representing possible futures lying ahead. But under any scenario EU will be faced with a necessity to shoulder more of the burden of their own security.


Author(s):  
Tu T. T. Tran ◽  
Yen Thi Nguyen

Project 254 signed in November 2011 which is relating to “Restructuring the system of credit institutions in the period of 2011–2015” has been considered as a milestone in marking the Vietnamese government to prevent the influence of the financial crisis of 2008. This paper identifies hypotheses evaluating the impact of restructuring measurements on the risk of the Vietnamese’s commercial banks in 10 years, starting from 2008. Using the OLS regression method for analysis by running Eviews and ANOVA test in SPSS with a unique database of 216 observations of 31 commercial banks in Vietnam, it was found that: (i) The bail-out activities of the State Bank of Vietnam in 2015 does not influence on bank risk, (ii) The mergers and acquisitions (M&A) do not support the bank to reduce risk, it increases the risk for acquiring banks, (iii) The global crisis 2008 exerts dire consequence on the bank system in Vietnam, (iv) There is the difference of risk among the groups of the bank experiencing a different number of years of operation. Basing on this result, the paper also makes recommendations to the Government, The State Bank of Vietnam and the commercial banks for effective risk management toward the development of the Vietnamese banking system.


Author(s):  
Paul Craig

This chapter traces the development of what is now the EU. It first describes the origins of ideas of European unity. It then discusses the various treaties that paved the way towards broader European integration. These include the European Coal and Steel Community Treaty of 1951,the Single European Act 1986, the Treaty on European Union (TEU) of 1992, and the Lisbon Treaty of 2009. Next, the chapter turns to the impact of the global financial crisis on the EU and considers several theories of integration.


Author(s):  
Juan Fernando López Aguilar

Desde los primeros capítulos de la construcción europea con el Tratado de Roma (1957) que cumple 60 años, la jurisprudencia dictada por el Tribunal de Justicia ha sido determinante para la dimensión constitucional del ordenamiento comunitario. En una secuencia de decisiones históricas, el TJ ha afirmado su primacía, eficacia vinculante y su unidad garantizando su interpretación y aplicación uniforme, pero también, sobre todo, los derechos fundamentales dimanantes de las tradiciones constitucionales comunes como fuente del Derecho europeo (principios generales). Esta doctrina se consolida en Derecho positivo, al fin, con la entrada en vigor del Tratado de Lisboa (TL) en 2009, incorporando el TUE, el TFUE, y, relevantemente, la Carta de Derechos Fundamentales de la UE (CDFUE) con el «mismo valor jurídico que los Tratados» y, consiguientemente, parámetro de validez de todo el Derecho derivado, así como de enjuiciamiento de la compatibilidad de la legislación de los EE.MM con el Derecho europeo.La doctrina del TJUE sobre derechos fundamentales ha sido su proyección sobre la protección de datos en el marco de los derechos a la vida privada, a la privacidad frente a la transferencia electrónica de datos y al acceso a la tutela judicial de estos derechos (art. 7, 8 y 47 CDFUE). En ella conjuga los principios de reserva de ley (respetando su contenido esencial) y de proporcionalidad y necesidad de las medidas que les afecten. Pero, además, esta doctrina ha adquirido un impacto decisivo en la articulación jurídica de la relación transatlántica entre la UE y EEUU, confrontando los estándares de protección de datos a ambos lados del Atlántico e imponiendo garantías de un «nivel de protección adecuado» para los ciudadanos europeos. Este artículo examina el impacto de dos recientes sentencias relevantes del TJ —Asunto Digital Rights Ireland (2014) y Asunto Schrems (2015)— sobre el Derecho derivado (Directiva de Conservación de Datos de 2006, Directiva de Protección de Datos de 1995, y Decisión de «adecuación» de la Comisión Europea de 2000) y sobre instrumentos de Derecho internacional (Acuerdo Safe Harbour) entre la UE y EEUU. Impone, como consecuencia, no sólo una negociación que repare las deficiencias detectadas en ambas resoluciones sino una actualización del Derecho europeo (nuevo Data Protection Package en 2016) y una novedosa Ley federal de EEUU que por primera vez ofrece a los ciudadanos europeos acceso al sistema de recursos judiciales ante los tribunales estadounidenses en la defensa del derecho a la protección de datos (Judicial Redress Act, 2016).Right from the first very chapters of the European construction under the Treaty of Rome (1957), which turns 60 this year 2017, the jurisprudence by the Court of Justice has truly been decisive to shape the constitutional dimension of the European Community legal order. In a series of historical decisions, the CJEU has affirmed its primacy, its binding efficacy and unity, while guaranteeing its uniform interpretation and implementation. But it has also, above all, enshrined the fundamental rights resulting from the common constitutional traditions as a source of European Law (i.e general principles). This legal doctrine has been ultimately consolidated in positive Law, finally, with the entry into force of the Treaty of Lisbon (TL) in 2009, incorporating the TEU, the TFEU and, most notably, the Charter of Fundamental Rights of the EU (CFREU) with the «same legal value as the Treaties». Charter Fundamental Rights have turned to be, consequently, a parameter for examining the validity of secondary EU legislation, as well as for scrutinizing and reviewing the standard of compatibility of the national legislation of EU Member States with European law. The legal doctrine of the ECJ on fundamental rights has been particularly relevant in its impact on the data protection in the framework of the rights to privacy, privacy with regard to the electronic data transfer, and access to judicial protection of these rights (art. 7, 8 and 47 CFREU). It combines the principles of reservation of law (in due respect of its essential content) as well as proportionality and necessity for legislative measures that might affect them. But, moreover, this doctrine has had a decisive impact on the legal articulation of the so-called transatlantic partnership between the EU and the US, confronting data protection standards on both sides of the Atlantic and imposing guarantees of an «adequate level of protection» for all European citizens. This paper explores the impact of two recent relevant decisions by the ECJ — its rulings on Digital Rights Ireland case (2014) and on the Schrems case (2015) — upon the secondary EU legislation (Data Retention Directive of 2006, Data Protection Directive of 1995, and the «adequacy» Decision of the European Commission of 2000), as well as upon International Law instruments (Safe Harbour Agreement) between the EU and the US. It imposes, as a consequence, not only a negotiation that remedies the shortcomings detected in both decisions, but also a compelling updating of European law itself (new Data Protection Package in 2016) and a new US federal law, which, for the first time ever, provides European citizens with access to judicial remedies in U.S. Courts in defending their right to data protection (Judicial Redress Act, 2016).


2020 ◽  
Vol 74 ◽  
pp. 03006
Author(s):  
Irena Nesterova

The growing use of facial recognition technologies has put them under the regulatory spotlight all around the world. The EU considers to regulate facial regulation technologies as a part of initiative of creating ethical and legal framework for trustworthy artificial intelligence. These technologies are attracting attention of the EU data protection authorities, e.g. in Sweden and the UK. In May, San Francisco was the first city in the US to ban police and other government agencies from using facial recognition technology, soon followed by other US cities. The paper aims to analyze the impact of facial recognition technology on the fundamental rights and values as well as the development of its regulation in Europe and the US. The paper will reveal how these technologies may significantly undermine fundamental rights, in particular the right to privacy, and may lead to prejudice and discrimination. Moreover, alongside the risks to fundamental rights a wider impact of these surveillance technologies on democracy and the rule of law needs to be assessed. Although the existing laws, in particular the EU General Data Protection Regulation already imposes significant requirements, there is a need for further guidance and clear regulatory framework to ensure trustworthy use of facial recognition technology.


Sign in / Sign up

Export Citation Format

Share Document