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Overview of recent policy initiatives in response to the crisis

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  • Praet, Peter
  • Nguyen, Grégory

Abstract

This paper describes several (European) regulatory initiatives undertaken following the financial crisis. There have been global responses, such as the FSF and BCBS 2008 Reports; numerous national initiatives, including a new Belgian network; and the European 2008 MOU, with nine common principles. The first concerns objectives; the rest cover three main topics, including: (1) crisis management framework; (2) co-ordination between authorities during crises; (3) choice of resolution policy. The MOU advocates the establishment of cross-border stability groups (CBSG). Finally we discuss the distinction between potential agreements on: (1) burden-sharing principles and (2) burden-sharing rules. Without the possibility of an effective enforcement policy, the former is preferable.

Suggested Citation

  • Praet, Peter & Nguyen, Grégory, 2008. "Overview of recent policy initiatives in response to the crisis," Journal of Financial Stability, Elsevier, vol. 4(4), pages 368-375, December.
    • Handle: RePEc:eee:finsta:v:4:y:2008:i:4:p:368-375
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    References listed on IDEAS

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    1. Alan Greenspan, 2005. "Risk transfer and financial stability," Proceedings 968, Federal Reserve Bank of Chicago.
    2. Praet, P. & Herzberg, V., 2008. "Market liquidity and banking liquidity: linkages, vulnerabilities and the role of disclosure," Financial Stability Review, Banque de France, issue 11, pages 95-109, February.
    3. Ingo Fender & Janet Mitchell, 2005. "Structured finance : complexity, risk and the use of ratings," Financial Stability Review, National Bank of Belgium, vol. 3(1), pages 127-135, June.
    4. Charles Goodhart & Dirk Schoenmaker, 2009. "Fiscal Burden Sharing in Cross-Border Banking Crises," International Journal of Central Banking, International Journal of Central Banking, vol. 5(1), pages 141-165, March.
    5. Grégory Nguyen & Peter Praet, 2006. "Cross-border crisis management : a race against the clock or a hurdle race ?," Financial Stability Review, National Bank of Belgium, vol. 4(1), pages 151-173, June.
    6. Grégory Nguyen, 2008. "Burden-sharing agreements : the cart before the horse ?," Financial Stability Review, National Bank of Belgium, vol. 6(1), pages 119-132, June.
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    Cited by:

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    2. Dan Micuda & Sorin Visinescu, 2010. "Some Aspects Regarding The Recovery Of The European Banking Systems After The Financial Crisis," Romanian Economic Business Review, Romanian-American University, vol. 5(3), pages 246-257, September.
    3. Michael R King, 2009. "Time to buy or just buying time? The market reaction to bank rescue packages," BIS Working Papers 288, Bank for International Settlements.
    4. Diemo Dietrich & Achim Hauck, 2012. "Government interventions in banking crises: effects of alternative schemes on bank lending and risk taking," Scottish Journal of Political Economy, Scottish Economic Society, vol. 59(2), pages 133-161, May.
    5. Peter Praet, 2010. "Building a more stable financial system : regulatory reform in a post-crisis perspective," Financial Stability Review, National Bank of Belgium, vol. 8(1), pages 115-126, June.
    6. Andrieș, Alin Marius & Nistor, Simona & Ongena, Steven & Sprincean, Nicu, 2020. "On Becoming an O-SII (“Other Systemically Important Institution”)," Journal of Banking & Finance, Elsevier, vol. 111(C).
    7. Jean Pisani-Ferry & André Sapir, 2009. "Banking Crisis Management in the EU- An Interim Assessment," Working Papers 359, Bruegel.
    8. Căpraru, Bogdan & Georgescu, George & Sprincean, Nicu, 2022. "Do independent fiscal institutions cause better fiscal outcomes in the European Union?," Economic Systems, Elsevier, vol. 46(2).
    9. Ding, Cherng G. & Wu, Chiu-Hui & Chang, Pao-Long, 2013. "The influence of government intervention on the trajectory of bank performance during the global financial crisis: A comparative study among Asian economies," Journal of Financial Stability, Elsevier, vol. 9(4), pages 556-564.
    10. Capraru, Bogdan & Georgescu, George & Sprincean, Nicu, 2020. "An evaluation of IFIs impact on EU countries budget deficits," Working Papers of Romania Fiscal Council 201101, Romania Fiscal Council.
    11. Andriosopoulos, Kostas & Chan, Ka Kei & Dontis-Charitos, Panagiotis & Staikouras, Sotiris K., 2017. "Wealth and risk implications of the Dodd-Frank Act on the U.S. financial intermediaries," Journal of Financial Stability, Elsevier, vol. 33(C), pages 366-379.

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