IDEAS home Printed from https://ideas.repec.org/h/elg/eechap/15935_4.html
   My bibliography  Save this book chapter

State aid to banking: application of the market economy investor principle

In: Research Handbook on State Aid in the Banking Sector

Author

Listed:
  • Phedon Nicolaides

Abstract

While most of the public support of financial institutions granted during the crisis period was deemed State aid, there were still a few instances in which public support escaped this qualification. This chapter examines the conditions under which public funding of banks does not constitute State aid, with particular emphasis on the application of the market economy investor principle (MEIP) to banking. It describes the main aspects of the MEIP, refers to the role of the European Central Bank in defining the rates of remuneration that would be acceptable to a private investor, and reviews the main contentious issues arising from application of the MEIP. It also refers to other public measures which do not constitute State aid other than by conforming with the behaviour of a hypothetical private investor.

Suggested Citation

  • Phedon Nicolaides, 2017. "State aid to banking: application of the market economy investor principle," Chapters, in: François-Charles Laprévote & Joanna Gray & Francesco De Cecco (ed.), Research Handbook on State Aid in the Banking Sector, chapter 4, pages 87-106, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:15935_4
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/view/9781783478071.00017.xml
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Economics and Finance; Law - Academic;

    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:elg:eechap:15935_4. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Darrel McCalla (email available below). General contact details of provider: http://www.e-elgar.com .

    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.