IDEAS home Printed from https://ideas.repec.org/p/zbw/safewh/93.html
   My bibliography  Save this paper

Completing the banking union: Economic requirements and legal conditions

Author

Listed:
  • Beck, Thorsten
  • Krahnen, Jan Pieter
  • Martin, Philippe J.
  • Mayer, Franz C.
  • Pisani-Ferry, Jean
  • Tröger, Tobias
  • Weder, Beatrice
  • Véron, Nicolas
  • Zettelmeyer, Jeromin

Abstract

The great financial crisis and the euro area crisis led to a substantial reform of financial safety nets across Europe and - critically - to the introduction of supranational elements. Specifically, a supranational supervisor was established for the euro area, with discrete arrangements for supervisory competences and tasks depending on the systemic relevance of supervised credit institutions. A resolution mechanism was created to allow the frictionless resolution of large financial institutions. This resolution mechanism has been now complemented with a funding instrument. While much more progress has been achieved than most observers could imagine 12 years ago, the banking union remains unfinished with important gaps and deficiencies. The experience over the past years, especially in the area of crisis management and resolution, has provided impetus for reform discussions, as reflected most lately in the Eurogroup statement of 16 June 2022.

Suggested Citation

  • Beck, Thorsten & Krahnen, Jan Pieter & Martin, Philippe J. & Mayer, Franz C. & Pisani-Ferry, Jean & Tröger, Tobias & Weder, Beatrice & Véron, Nicolas & Zettelmeyer, Jeromin, 2022. "Completing the banking union: Economic requirements and legal conditions," SAFE White Paper Series 93, Leibniz Institute for Financial Research SAFE.
    • Handle: RePEc:zbw:safewh:93
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/270987/1/1828308668.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Krahnen, Jan Pieter, 2013. "Deposit insurance suitable for Europe: Proposal for a three-stage deposit guarantee scheme with limited European liability," SAFE Policy Letters 8, Leibniz Institute for Financial Research SAFE.
    2. Götz, Martin & Krahnen, Jan Pieter & Tröger, Tobias, 2017. "Five years after the Liikanen Report: What have we learned?," SAFE White Paper Series 50, Leibniz Institute for Financial Research SAFE.
    3. Emilios Avgouleas & Charles Goodhart, 2015. "Critical Reflections on Bank Bail-ins," Journal of Financial Regulation, Oxford University Press, vol. 1(1), pages 3-29.
    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. Cœuré, Benoît & König, Elke & Krahnen, Jan Pieter & Huizinga, Harry & Schlegel, Jonas, 2024. "Winners and losers in bank resolution: Recent examples and a modest reform proposal," SAFE White Paper Series 106, Leibniz Institute for Financial Research SAFE.

    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. Heider, Florian & Krahnen, Jan Pieter & Pelizzon, Loriana & Schlegel, Jonas & Tröger, Tobias, 2023. "European lessons from Silicon Valley Bank resolution: A plea for a comprehensive demand deposit protection scheme (CDDPS)," SAFE Policy Letters 98, Leibniz Institute for Financial Research SAFE.
    2. Fiordelisi, Franco & Minnucci, Federica & Previati, Daniele & Ricci, Ornella, 2020. "Bail-in regulation and stock market reaction," Economics Letters, Elsevier, vol. 186(C).
    3. T. R. Hurd, 2018. "Bank Panics And Fire Sales, Insolvency And Illiquidity," International Journal of Theoretical and Applied Finance (IJTAF), World Scientific Publishing Co. Pte. Ltd., vol. 21(06), pages 1-30, September.
    4. Phillip Keefer & Carlos Scartascini, 2022. "Organization, Citizenship, and the Social Contract," IDB Publications (Book Chapters), in: Phillip Keefer & Carlos Scartascini (ed.), Trust: The Key to Social Cohesion and Growth in Latin America and the Caribbean, edition 1, chapter 8, pages 195-222, Inter-American Development Bank.
    5. Farmer, J. Doyne & Goodhart, C. A. E. & Kleinnijenhuis, Alissa M., 2021. "Systemic implications of the bail-in design," LSE Research Online Documents on Economics 111903, London School of Economics and Political Science, LSE Library.
    6. Festić Mejra, 2019. "International Environment: Recovery and Resolution Regimes as the Pillar of the Banking Union," Naše gospodarstvo/Our economy, Sciendo, vol. 65(2), pages 30-40, June.
    7. Samuel Berlinski & Matias Busso & Phillip Keefer & Carlos Scartascini, 2022. "A Primer on Trust: Measures and Determinants," IDB Publications (Book Chapters), in: Phillip Keefer & Carlos Scartascini (ed.), Trust: The Key to Social Cohesion and Growth in Latin America and the Caribbean, edition 1, chapter 2, pages 27-50, Inter-American Development Bank.
    8. Cutura, Jannic Alexander, 2021. "Debt holder monitoring and implicit guarantees: Did the BRRD improve market discipline?," Journal of Financial Stability, Elsevier, vol. 54(C).
    9. Poullikka, Agni, 2024. "The 2013 Cypriot banking crisis and blame attribution: survey evidence from the first application of a bail-in in the Eurozone," LSE Research Online Documents on Economics 121228, London School of Economics and Political Science, LSE Library.
    10. Miguel Porrua & Benjamin Roseth, 2022. "The Link between Trust and Digital Transformation," IDB Publications (Book Chapters), in: Phillip Keefer & Carlos Scartascini (ed.), Trust: The Key to Social Cohesion and Growth in Latin America and the Caribbean, edition 1, chapter 6, pages 143-168, Inter-American Development Bank.
    11. Götz, Martin & Tröger, Tobias & Wahrenburg, Mark, 2019. "The next SSM term: Supervisory challenges ahead," SAFE White Paper Series 59, Leibniz Institute for Financial Research SAFE.
    12. Edoardo Martino, 2022. "Getting bank governance right," Journal of Banking Regulation, Palgrave Macmillan, vol. 23(3), pages 302-321, September.
    13. Sergio Perilla & Razvan Vlaicu & Phillip Keefer, 2022. "Trust, Citizenship, and the Making of Good Public Policy," IDB Publications (Book Chapters), in: Phillip Keefer & Carlos Scartascini (ed.), Trust: The Key to Social Cohesion and Growth in Latin America and the Caribbean, edition 1, chapter 4, pages 79-108, Inter-American Development Bank.
    14. Koetter, Michael & Krause, Thomas & Sfrappini, Eleonora & Tonzer, Lena, 2022. "Completing the European Banking Union: Capital cost consequences for credit providers and corporate borrowers," European Economic Review, Elsevier, vol. 148(C).
    15. Roy Havemann, 2019. "Can Creditor Bail-in Trigger Contagion? The Experience of an Emerging Market," Review of Finance, European Finance Association, vol. 23(6), pages 1155-1180.
    16. Thorsten Beck & Samuel Da-Rocha-Lopes & André F Silva & Francesca Cornelli, 2021. "Sharing the Pain? Credit Supply and Real Effects of Bank Bail-ins [High wage workers and high wage firms]," The Review of Financial Studies, Society for Financial Studies, vol. 34(4), pages 1747-1788.
    17. Phillip Keefer & Carlos Scartascini, 2022. "The Power of Information," IDB Publications (Book Chapters), in: Phillip Keefer & Carlos Scartascini (ed.), Trust: The Key to Social Cohesion and Growth in Latin America and the Caribbean, edition 1, chapter 9, pages 223-254, Inter-American Development Bank.
    18. Vittoria Cerasi & Stefano Montoli, 2020. "Bank resolution and multinational banks," Working Papers 447, University of Milano-Bicocca, Department of Economics, revised Jul 2020.
    19. Patricio Dominguez & Veronica Frisancho & Bridget Hoffmann, 2022. "Trust and the Effectiveness of Public Policy," IDB Publications (Book Chapters), in: Phillip Keefer & Carlos Scartascini (ed.), Trust: The Key to Social Cohesion and Growth in Latin America and the Caribbean, edition 1, chapter 5, pages 109-142, Inter-American Development Bank.
    20. Lorenzo Pandolfi, 2022. "Bail-in and Bailout: Friends or Foes?," Management Science, INFORMS, vol. 68(2), pages 1450-1468, February.

    More about this item

    Keywords

    Banking Union; Legal Reforms;

    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:zbw:safewh:93. 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/csafede.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.