The European deposit insurance game plan

2019 ◽  
Vol 11 (1) ◽  
pp. 2-20
Author(s):  
Theo Kiriazidis
Keyword(s):  
Financial Stability ◽  
Deposit Insurance ◽  
Banking Union ◽  
Discretionary Power ◽  
Content Type ◽  
Financial Framework ◽  
Seeking Behavior ◽  
Game Plan ◽  
Practical Implications ◽  
The Eu

Purpose This paper aims to analyze the development of European Deposit Insurance (DI) and assess the recent development at the EU level to establish a European Deposit Insurance Scheme (EDIS) in the context of a more integrated financial framework: the Banking Union (BU). Design/methodology/approach The author uses literature review and empirical evidence to analyze the dynamic interaction among European governments in an effort to attract aggressive deposits with severe repercussion for financial stability. Findings The paper argues that a liquidity providing EDIS would render regulatory subsidy and rent-seeking behavior persisting by allowing national policies to be pursued with considerable discretionary power and in the context of increasing competition for deposits. This would run contrary to the BU objectives and constitute a major failure of the program. Practical implications The findings of the study can be helpful in understanding the DI policies pursued by European governments and their implications. Originality/value To the best of the authors’ knowledge, this is the first study that examines the interactions among European governments in pursuing DI policies and assesses the implications of EDIS.

The opportunity for euro-area reform is closing

2019 ◽  
Keyword(s):  
Euro Area ◽  
Deposit Insurance ◽  
Insurance Coverage ◽  
Burden Sharing ◽  
Banking Union ◽  
Governance Reform ◽  
Content Type ◽  
European Banking Union ◽  
European Banking ◽  
The Eu

Subject Euro-area governance. Significance In the EU, macroeconomic governance reform is focusing around the creation of a euro-area budget and a European Deposit Insurance Scheme (EDIS) -- the final pillar for the completion of the European Banking Union (EBU) which would provide stronger insurance coverage for member states. However, northern countries are reluctant to pay for crisis-prone ones in the south, so compromise on detail could take years while the initiatives will have limited scope in responding to crises. Impacts The ECB’s Single Supervisory Mechanism will continue to focus on ‘risk reduction’ measures, including the disposal of non-performing loans. The EU is unlikely to give Italian budget concessions perceived as acceptable by Rome, possibly hardening the position of Italy’s populists. If Manfred Weber’s candidacy to become European Commission president fails, Berlin will likely insist that it gets the ECB president post. The rise of migration flows in the Mediterranean and the lack of EU resolution on burden-sharing will worsen north-south relations.

scholarly journals Macroprudential ring-fencing

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tomáš Konečný ◽  
Lukáš Pfeifer
Keyword(s):  
Financial Stability ◽  
Capital Mobility ◽  
Financial Integration ◽  
Banking Union ◽  
Policy Action ◽  
Content Type ◽  
Cross Border ◽  
Macroprudential Policies ◽  
Structural Capital ◽  
The Eu

Purpose This paper aims to focus on capital-related macroprudential policies in the context of recent policy discussions on the removal of barriers to the mobility of capital and liquidity of cross-border banks in the European Union (EU). Design/methodology/approach This study first discusses the link between financial stability and internal resource mobility of cross-border banks. Then, it examines past heterogeneity in structural capital buffers as key macroprudential capital instruments applied in the EU and relate them to costs of policy action, degree of foreign penetration and membership in the Banking Union. Findings Observed phase-in patterns of structural capital buffers in the EU are broadly consistent with costs of policy action, degree of foreign penetration and membership in the Banking Union as potential factors. The process of financial integration could be further enhanced through reduced uncertainty in the application of macroprudential policies that constrain capital mobility of cross-border banks. Originality/value This paper anchors macroprudential policies into a wider discussion on the mechanism and implications of ring-fencing in the EU over time. It discusses two policy areas, macroprudential policies and proposals for deeper financial integration, that share the same financial stability objective but tend to emphasize different implications of the mobility of capital and liquidity of cross-border banks in the EU. The study provides a discussion of potential implications of the recent adoption of the CRRII/CRDV legislation for future heterogeneity of macroprudential policies in the EU.

scholarly journals Deposit insurance systems in the European union: legal regulation and development prospects

2019 ◽  
pp. 156-162
Author(s):  
N. M. Alsov
Keyword(s):  
European Union ◽  
Financial Stability ◽  
Deposit Insurance ◽  
Banking Sector ◽  
Legal Regulation ◽  
Banking Union ◽  
The European Union ◽  
Insurance Policy ◽  
The Third ◽  
The Eu

The paper provides a historical, substantive and functional analysis of the legal regulation of deposit insurance systems (hereinafter referred to as DIS) in the European Union based on Directive 2014/49 / EC of the European Parliament and of the Council of April 16, 2014. “On Deposit Insurance Systems” (revised). The author considers the contribution of DIS to improving the financial stability of the EU banking sector. The paper shows a conducted assessment of the measures implemented and planned for implementation initiated by the European Commission and the European Central Bank for the implementation of a single European DIS as the third pillar of the Banking Union. The author concludes that the third Directive “On DIS” allows for a qualitative step forward towards the creation of the third pillar of the Banking Union. Despite some unresolved and controversial issues, it creates uniform rules of the game for national DIS in a deposit insurance policy. Further development and movement towards European DIS will make it possible to increase the effectiveness of the EU deposit insurance policy by reducing costs, overcoming administrative barriers in national DISs, increase the level of protection of depositors’ rights, and strengthen confidence in the banking sector and its stability.

scholarly journals The Single Market and Synchronized Mechanisms for the Exercise of Administrative Functions: Converging Pathways or New Pathways for Integration? The Case of the European Banking Union

2017 ◽  
Vol 9 (2) ◽  
pp. E-154-E-179
Author(s):  
Fabio Giglioni
Keyword(s):  
Financial Stability ◽  
Financial Integration ◽  
Executive Power ◽  
Banking Union ◽  
New Governance ◽  
Discretionary Power ◽  
European Banking Union ◽  
Administrative Functions ◽  
European Banking ◽  
The Eu

Abstract The EBU represents a clear investment in administrative integration with clear implications for the constitutional features of the EU. This paper aims to give an analysis of the administrative arrangements, through which the functions of supervision and resolution are affecting the single financial market. This case study is very interesting because these functions represent a genuine novelty in the history of financial integration since they are pre-ordained to a specific public interest: financial stability. Particularly, they cause a shift in the decision gradient from the technical to the political, as market integrity is less and less the key interest compared to financial stability. However, this wider discretionary power is not adequately counteracted by checks and balances in favour of accountability. As a result, the EBU makes a new contribution to the well-known ‘fragmentation of the executive power’ of the EU by introducing a new governance tool positioned between the Communitarian and Intergovernmental Method, but its development is still full of uncertainties given that constitutional equilibrium is far from being definitively reached.

scholarly journals European Deposit Insurance Scheme(s) – Consequences for the EU’s Financial Stability

2021 ◽  
Vol 24 (4) ◽  
pp. 123-136
Author(s):  
Klaudia Zielińska-Lont
Keyword(s):  
Financial Stability ◽  
Deposit Insurance ◽  
Banking Union ◽  
The European Union ◽  
Target Level ◽  
Insurance Scheme ◽  
National Implementation ◽  
Deposit Guarantee Schemes ◽  
Limited Scope ◽  
The Eu

The aim of this paper is to evaluate the potential consequences that the shortcomings in harmonising the national deposit guarantee schemes may have on the financial stability of the European Union. The relevance of this subject is underlined both by the European Commission’s intention to revive the European Deposit Insurance Scheme project in 2021 and the recent signals from Germany that they are willing to support the initiative. The paper presents a review of the discussions on establishing a European Deposit Insurance Scheme, the reasons for the project’s failure and the consensus solution that took the form of the Deposit Guarantee Scheme Directive (DGSD). The limited scope of deposit guarantee scheme harmonisation under this directive is discussed in the context of the related EBA opinions pointing to different areas of potential improvements. Differences in national implementation are also reviewed in terms of their potential impact on financial stability. Apart from a careful literature review, statistical analysis of the available financial information characterizing the largest national deposit schemes of the euro is performed to quantify their progress towards the target level of the available financial means. The results prove that most national schemes are still far from reaching the 0.8% target level of readily available funds and that potentially desirable amendments to the DGSD may drag them even further away from reaching that target by 2024. The author concludes that from the perspective of financial stability, the EU should focus on establishing a single scheme at an international level that would complete the project of establishing a banking union. The results contribute to the ongoing discussion on the need to further integrate the national deposit guarantee schemes inside the EU.

scholarly journals Unemployment and spell duration during the Great Recession in the EU

2015 ◽  
Vol 36 (2) ◽  
pp. 216-235 ◽  
Author(s):  
Carlos Gradín ◽  
Olga Cantó ◽  
Coral del Río
Keyword(s):  
Great Recession ◽  
Negative Impact ◽  
Labour Force ◽  
Future Research ◽  
Cross Sectional ◽  
Content Type ◽  
The Great Recession ◽  
Unemployment Spells ◽  
Practical Implications ◽  
The Eu

Purpose – The purpose of this paper is to analyze the different dynamic characteristics of unemployment in a selected group of European Union countries during the current Great Recession, which had unequal consequences on employment depending on the country considered. Design/methodology/approach – The paper follows Shorrocks’s proposal of a duration-sensitive measure of unemployment, and uses cross-sectional data reported by Eurostat coming from European Labour Force Surveys. Findings – The results add some evidence on the relevance of incorporating spells’ duration in measuring unemployment, finding remarkable differences in unemployment patterns in time among European countries. Research limitations/implications – In this paper unemployment is analyzed for all the labor force. Future research should investigate patterns across specific groups such as young people, women, immigrants or the low skilled. Practical implications – It is generally accepted that the negative impact of unemployment on individual welfare can be very different depending on its duration. However, conventional statistics on unemployment do not adequately capture to what extent the recession is not only increasing the incidence of unemployment but also its severity in terms of duration in time of ongoing unemployment spells. The paper shows an easy and practical way to do it in order to improve the understanding of the unemployment phenomenon, using information usually reported by statistical offices. Originality/value – First, the paper provides a tool for dynamic analysis of unemployment based on reported cross-sectional data. Second, the paper demonstrates the empirical relevance of considering spells’ duration when assessing differences in unemployment across countries or in unemployment trends. This is usually neglected or only partially addressed by most conventional measures of unemployment.

How does abusive supervision restrict employees’ feedback-seeking behavior?

2019 ◽  
Vol 34 (8) ◽  
pp. 546-559 ◽  
Author(s):  
Chuangang Shen ◽  
Jing Yang ◽  
Peixu He ◽  
Yenchun Jim Wu
Keyword(s):  
Detrimental Effect ◽  
Abusive Supervision ◽  
Hierarchical Regression ◽  
Feedback Seeking ◽  
Content Type ◽  
Abusive Behavior ◽  
Member Exchange ◽  
Seeking Behavior ◽  
Concept Theory ◽  
Practical Implications

Purpose The purpose of this paper is to explore the restrictive effect of abusive supervision on employees’ feedback-seeking behavior (FSB) through organizational-based self-esteem (OBSE) and the moderation of this mediation by leader-member exchange (LMX). Design/methodology/approach This study conducted hierarchical regression and path analysis to analyze the 312 manager–employee dyads data gathered from five companies in China. Findings The authors found that abusive supervision had a detrimental effect on employee FSB, partially through OBSE, and that both the direct and indirect effects were moderated by LMX. Practical implications Organizations should seek to inhibit supervisors’ abusive behavior in the workplace. Supervisors should not occasionally mistreat subordinates with whom they have a good relationship. Originality/value This study reveals the underlying influence mechanism of abusive supervision on employee FSB using the self-concept theory and suggests that OBSE is critical in determining how abusive supervision influences employee FSB. Furthermore, LMX quality (especially high LMX) moderates the above mediation.

Risk managing contractual routes to effective innovation procurement

2019 ◽  
Vol 35 (10) ◽  
pp. 18-20
Keyword(s):  
Risk Management ◽  
Design Methodology ◽  
Reading Time ◽  
Public Procurement ◽  
Public Organization ◽  
Content Type ◽  
The Public ◽  
Pertinent Information ◽  
Practical Implications ◽  
The Eu

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on the public procurement of innovations (PPI) within the EU as a mechanism for stimulating private sector R&D efforts that solve public organization-identified problems. The authors encourage less risk aversion and greater risk management to encourage the increased use of cost-plus contracts to spread some risk between the procurer and supplier, which should in turn attract more innovative companies to participate in PPI exercises. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Targeting the Digital Agenda for Europe: a new approach for estimating ICT R&D expenditures

Info ◽  
2014 ◽  
Vol 16 (1) ◽  
pp. 45-61 ◽  
Author(s):  
Juraj Stančík
Keyword(s):  
Information And Communication Technologies ◽  
Communication Technologies ◽  
The European Union ◽  
Public And Private ◽  
New Approach ◽  
Content Type ◽  
Labour Costs ◽  
Information And Communication ◽  
Practical Implications ◽  
The Eu

Purpose – The main goal of this paper is to create a methodology for estimating public research and development (R&D) expenditures on Information and Communication Technologies (ICT) in the European Union (EU). The study further applies this methodology on business expenditures on R&D (BERD) data across all sectors and estimate ICT BERD within each of them. Then the study assesses the evolution of these expenditures in the context of the Digital Agenda for Europe (DAE) and its specific target to double them by 2020. Design/methodology/approach – The study assumes that the share of public ICT R&D expenditures in total public R&D expenditures is similar to the share of ICT R&D labour costs. The study bases its estimation on government budget appropriations or outlays on R&D (GBAORD). Findings – EU public ICT R&D expenditures grew steadily over the period 2004-2010 and in 2010 reached 5.9 billion. The study also estimates that the total EU ICT BERD in 2010 amounted to 15.8 billion. Regarding the DAE target about ICT R&D expenditures, the study shows that, in both public and private, the EU drops behind. Research limitations/implications – The study estimates that substantial ICT BERD can be found also in non-ICT sectors. Practical implications – The methodology allows for monitoring one of the DAE targets. Originality/value – The methodology currently represents the only way for measuring public ICT R&D expenditures in the EU.

MiFID II will recast Europe’s financial landscape

2017 ◽  
Keyword(s):  
United States ◽  
United Kingdom ◽  
Financial Stability ◽  
The United States ◽  
Financial Instruments ◽  
Content Type ◽  
The United Kingdom ◽  
The World ◽  
October 17 ◽  
The Eu

Subject MiFID II implementation and compliance Significance The EU’s flagship investor protection reform -- the Markets in Financial Instruments Directive II (MiFID II) -- will come into force on January 3, 2018, Valdis Dombrovskis, the EU Commissioner responsible for financial stability, confirmed on October 17, saying that there would not be a further delay. Despite already having been given an extra year's extension, banks are struggling to comply in time because of the directive's complexity. Regulators, too, are behind in expanding their capacity to enforce it. Impacts Firms across the world that do any of their business within the EU will have to comply, not just those registered in the EU. All firms trading in financial instruments must comply but those where this is a small part of their business may be caught unawares. MiFID II will come into effect before the United Kingdom leaves the EU and is likely to be written into UK law post-Brexit. The United States is keen to deregulate, but US firms whose EU activity is not compliant will be punished, possibly harming US-EU relations.

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