IDEAS home Printed from https://ideas.repec.org/a/aio/aucsse/v1y2011i39p250-279.html
   My bibliography  Save this article

The Regulation Framework for the Banking Sector: The EMU, European Banks and Rating Agencies before and during the Recent Financial and Debt Crisis

Author

Listed:
  • Eleftherios Thalassinos

    (University of Piraeus)

  • Konstantinos Liapis

    (Panteion University)

  • John E. Thalassinos

    (MSc. London Business School)

Abstract

In our survey article, we present a holistic regulation framework for the banking sector. The article is based on European banks that are part of the European Monetary Union (EMU). Initially, we focus on the timelines and review the integration of the European Monetary Union, relevant legislation and information on member countries’ banking sectors. This information creates the framework for our analysis. A regulation framework for the banking sector should be characterised by transparency, responsibility and performance in several important areas. These areas are the global and European framework for corporate financial reporting (CFR), risk management (RM), stockholder value creation (SVC), corporate governance (CG), corporate social responsibility (CSR) and sustainable development (SD). The regulation framework for the banking sector must also consider the fiscal and monetary environment in which a banking institution operates. The global rating system and the rating agencies will also have an important impact on any regulation framework for the banking sector. These two factors play a key role when a financial, credit or debt crisis occurs. Our article considers all of the above factors in creating a holistic regulation framework for the banking sector to present in the context of the recent financial, credit and debt crises that have taken place in the EMU.

Suggested Citation

  • Eleftherios Thalassinos & Konstantinos Liapis & John E. Thalassinos, 2011. "The Regulation Framework for the Banking Sector: The EMU, European Banks and Rating Agencies before and during the Recent Financial and Debt Crisis," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 1(39), pages 250-279.
    • Handle: RePEc:aio:aucsse:v:1:y:2011:i:39:p:250-279
    as

    Download full text from publisher

    File URL: http://feaa.ucv.ro/AUCSSE/0039v1-039.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Street, Donna L. & Nichols, Nancy B. & Gray, Sidney J., 2000. "Assessing the Acceptability of International Accounting Standards in the US: An Empirical Study of the Materiality of US GAAP Reconciliations by Non-US Companies Complying with IASC Standards," The International Journal of Accounting, Elsevier, vol. 35(1), pages 27-63, March.
    2. Caroline Jardet & Gaelle Le Fol, 2010. "Euro money market interest rate dynamics and volatility: how they respond to recent changes in the operational framework," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 15(4), pages 316-330.
    3. Andrea B. Coulson, 2009. "How should banks govern the environment? Challenging the construction of action versus veto," Business Strategy and the Environment, Wiley Blackwell, vol. 18(3), pages 149-161, March.
    4. Paul Gompers & Joy Ishii & Andrew Metrick, 2003. "Corporate Governance and Equity Prices," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 107-156.
    5. Barros, Carlos Pestana & Ferreira, Candida & Williams, Jonathan, 2007. "Analysing the determinants of performance of best and worst European banks: A mixed logit approach," Journal of Banking & Finance, Elsevier, vol. 31(7), pages 2189-2203, July.
    6. Bhimani, Alnoor & Soonawalla, Kazbi, 2005. "From conformance to performance: The corporate responsibilities continuum," Journal of Accounting and Public Policy, Elsevier, vol. 24(3), pages 165-174.
    7. Rogers, John H., 2007. "Monetary union, price level convergence, and inflation: How close is Europe to the USA?," Journal of Monetary Economics, Elsevier, vol. 54(3), pages 785-796, April.
    8. E. Philip Davis, 1999. "Institutionalization and EMU: Implications for European Financial Markets," International Finance, Wiley Blackwell, vol. 2(1), pages 33-61, April.
    9. Dorothy Wood & Donald G. Ross, 2006. "Environmental social controls and capital investments: Australian evidence," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 46(4), pages 677-695, December.
    10. Alessia D'amato & Nigel Roome, 2009. "Leadership of organizational change toward an integrated model of leadership for corporate responsibility and sustainable development: A process model of corporate responsibility beyond management inn," ULB Institutional Repository 2013/164611, ULB -- Universite Libre de Bruxelles.
    11. Andreas Koutoupis & Anastasios Tsamis, 2009. "Risk based internal auditing within Greek banks: a case study approach," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 13(1), pages 101-130, May.
    12. Themis D. Pantos & Reza Saidi, 2005. "The Greek three-pillar functional system in the presence of the European Union Banking Directives," Journal of Financial Regulation and Compliance, Emerald Group Publishing, vol. 13(2), pages 167-176, May.
    13. Papadaskalopoulos, Athanasios & Karaganis, Anastasios & Christofakis, Manolis, 2005. "The spatial impact of EU Pan-European transport axes: City clusters formation in the Balkan area and developmental perspectives," Transport Policy, Elsevier, vol. 12(6), pages 488-499, November.
    14. Manolis Christofakis & George Mergos & Athanasios Papadaskalopoulos, 2009. "Sustainable and balanced development of insular space: the case of Greece," Sustainable Development, John Wiley & Sons, Ltd., vol. 17(6), pages 365-377.
    15. repec:dau:papers:123456789/5391 is not listed on IDEAS
    16. Valeriya Dinger & Jürgen von Hagen, 2009. "How small are the banking sectors in central and Eastern European countries really?," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 17(2), pages 96-118, May.
    17. Konstantinos J. Liapis, 2010. "The Residual Value Models: A Framework for Business Administration," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 83-102.
    18. Goddard, John & Molyneux, Philip & Wilson, John O.S. & Tavakoli, Manouche, 2007. "European banking: An overview," Journal of Banking & Finance, Elsevier, vol. 31(7), pages 1911-1935, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Konstantinos Liapis & Antonios Rovolis & Christos Galanos & Eleftherios Thalassinos, 2013. "The Clusters of Economic Similarities between EU Countries: A View Under Recent Financial and Debt Crisis," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 41-66.
    2. Itsaso Barrainkua & Marcela Espinosa-Pike, 2015. "Cultural and Socio-Economic Restrictions for the Adoption of the IESBA Code of Ethics for Professional Accountants in the European Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 3-24.
    3. Stefka Iankova, 2013. "Success and Failure Factors of the Mergers and Acquisitions Performance: Evidence from Bulgaria," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 79-90.
    4. Sofya Glavina, 2015. "Influence of Globalization on the Regional Capital Markets and Consequences; Evidence from Warsaw Stock Exchange," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 117-134.
    5. Konstantinos J. Liapis, 2018. "Managing NPEs Under Financial Crisis Conditions: A Synthetic Quick Approach," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 688-713.
    6. Konstantinos Liapis & Eleftherios Thalassinos, 2013. "A Comparative Analysis for the Accounting Reporting of “Employee Benefits†between IFRS and other Accounting Standards: A Case Study for the Biggest Listed Entities in Greece," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 91-116.
    7. Emmanouil Karakostas, 2023. "The Macroeconomic Determinants of the Stock Market Index Performance: The Case of DAX Index," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 21-38.
    8. Eugenia Iancu & Mihaela Tulvinschi, 2013. "The Role of the Accounting and Audit Standards in the Globalization Process," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 83-96.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John Thalassinos & Konstantinos Liapis, 2011. "Measuring a Bank’s Financial Health: A Case Study for the Greek Banking Sector," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 135-172.
    2. Athanasios Papadaskalopoulos & Manolis Christofakis & Peter Nijkamp, 2015. "The Coastal Shipping Network in Greek Insular Space: Reorganising it Towards a “Hub and Spoke†System Using Matrices of Flows and Connectivity Matrices," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 29-44.
    3. Anastasia I. Koutsomanoli‐Filippaki & Emmanuel C. Mamatzakis, 2011. "Efficiency under quantile regression: What is the relationship with risk in the EU banking industry?," Review of Financial Economics, John Wiley & Sons, vol. 20(2), pages 84-95, May.
    4. Tsionas, Efthymios G. & Assaf, A. George & Matousek, Roman, 2015. "Dynamic technical and allocative efficiencies in European banking," Journal of Banking & Finance, Elsevier, vol. 52(C), pages 130-139.
    5. Cândida Ferreira, 2009. "European Integration and the Credit Channel Transmission of Monetary Policy," Working Papers Department of Economics 2009/07, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    6. Kalyvas, Antonios Nikolaos & Mamatzakis, Emmanuel, 2014. "Does business regulation matter for banks in the European Union?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 32(C), pages 278-324.
    7. Liviu Deceanu & Mirela Pintea & El Thalassinos & Vicky Zampeta, 2010. "New Dimensions of Country Risk in the Context of the Current Crisis: A Case Study for Romania and Greece," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 225-236.
    8. Hoje Jo & Maretno Harjoto, 2012. "The Causal Effect of Corporate Governance on Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 106(1), pages 53-72, March.
    9. Dima Jamali & Asem M. Safieddine & Myriam Rabbath, 2008. "Corporate Governance and Corporate Social Responsibility Synergies and Interrelationships," Corporate Governance: An International Review, Wiley Blackwell, vol. 16(5), pages 443-459, September.
    10. Mercedes Rubio‐Andrés & María del Mar Ramos‐González & Miguel Ángel Sastre‐Castillo & Ignacio Danvila‐del‐Valle, 2020. "Exploring sustainability, good governance, and social responsibility in small and medium enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 852-869, March.
    11. Hidemichi Fujii & Shunsuke Managi & Roman Matousek & Aarti Rughoo, 2018. "Bank efficiency, productivity, and convergence in EU countries: a weighted Russell directional distance model," The European Journal of Finance, Taylor & Francis Journals, vol. 24(2), pages 135-156, January.
    12. Degl'Innocenti, Marta & Kourtzidis, Stavros A. & Sevic, Zeljko & Tzeremes, Nickolaos G., 2017. "Bank productivity growth and convergence in the European Union during the financial crisis," Journal of Banking & Finance, Elsevier, vol. 75(C), pages 184-199.
    13. Konstantinos Liapis & Antonios Rovolis & Christos Galanos & Eleftherios Thalassinos, 2013. "The Clusters of Economic Similarities between EU Countries: A View Under Recent Financial and Debt Crisis," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 41-66.
    14. Adel Elgharbawy & Magdy Abdel-Kader, 2013. "Enterprise governance and value-based management: a theoretical contingency framework," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(1), pages 99-129, February.
    15. Lozano-Vivas, Ana & Pastor, Jesús T., 2010. "Do performance and environmental conditions act as barriers for cross-border banking in Europe?," Omega, Elsevier, vol. 38(5), pages 275-282, October.
    16. Gilberto E. Arce & Edgar Robles C., 2005. "Corporate Governance in Costa Rica," Research Department Publications 3218, Inter-American Development Bank, Research Department.
    17. Hong Liu & Phil Molyneux & John O. S. Wilson, 2013. "Competition And Stability In European Banking: A Regional Analysis," Manchester School, University of Manchester, vol. 81(2), pages 176-201, March.
    18. Klapper, Leora F. & Love, Inessa, 2004. "Corporate governance, investor protection, and performance in emerging markets," Journal of Corporate Finance, Elsevier, vol. 10(5), pages 703-728, November.
    19. Manuel Ammann & Philipp Horsch & David Oesch, 2016. "Competing with Superstars," Management Science, INFORMS, vol. 62(10), pages 2842-2858, October.
    20. Tan, Monica & Liu, Bin, 2016. "CEO's managerial power, board committee memberships and idiosyncratic volatility," International Review of Financial Analysis, Elsevier, vol. 48(C), pages 21-30.

    More about this item

    Keywords

    Banking; Regulations; Financial Crisis; Debt Crisis; EMU;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aio:aucsse:v:1:y:2011:i:39:p:250-279. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anca Bandoi (email available below). General contact details of provider: https://edirc.repec.org/data/fecraro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.