The Integrated Supervision of Financial Markets: The Case of Switzerland

This paper focuses on the roots of strain in the European Monetary Union (EMU). It argues that there is need for a thorough reform of the EU governance structure in conjunction with radical changes in the regulation and supervision of financial markets. The EMU was sub-optimal from its debut and competitiveness gaps did not diminish against the backdrop of its inadequate policy and institutional design. The euro zone crisis is not related to fiscal negligence only; over-borrowing by the private sector and poor lending by banks, as well as a one-sided monetary policy also explain this debacle. The EMU needs to complement its common monetary policy with solid fiscal/budget underpinnings. Fiscal rules and sanctions are necessary, but not sufficient. A common treasury (a federal budget) is needed in order to help the EMU absorb shocks and forestall confidence crises. A joint system of regulation and supervision of financial markets should operate. Emergency measures have to be comprehensive and acknowledge the necessity of a lender of last resort; they have to combat vicious circles. Structural reforms and EMU level policies are needed to enhance competitiveness in various countries and foster convergence.

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Legal Nature of Supervisory Instruments above the Financial Market in the EU — Chosen Issues

Upravlenie ◽

10.12737/5641 ◽

2014 ◽

Vol 2 (3) ◽

pp. 76-80

Author(s):

Шаранец ◽

Monika zaraniec

Keyword(s):

Financial Markets ◽

Financial Market ◽

Financial Institutions ◽

Member States ◽

Legal Nature ◽

Organizational Aspect ◽

Standard Solution ◽

Financial Supervisors ◽

Supervision Of Financial Markets ◽

The Eu

In the article taken analysis of character of supervisory instruments was as part of uni-form financial markets the EU applied by EU organs of the supervision. To the end of 2010 the supervision of financial markets constituted the control domain of Member States in the financial, procedural and organizational aspect. At present European Sys-tem of Financial Supervisors (ESFS) and organs acting in his structures of the EU su-pervision have a right to issuing decisions of superintendents directly binding supervised entities, that is organs of the supervision and financial institutions acting on the market. A possibility of drawing up by European Supervisiory Authorities (ESA) is a special standard solution of projects binding technical standards (BTS) being subject to approving by the European Commission and having a power of direct being applicable in all Member States.

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