The Economic Crisis of 2008 and the Financial System Supervision: Towards an European Banking Union
Journal Title: Central European Review of Economics and Finance - Year 2018, Vol 24, Issue 2
Abstract
The significant repercussions of the recent crisis in the financial sector and the real economy have led to the development of policies aimed at strengthening the stability of the international banking system. Banking regulatory reforms (Basel III) improve micro-prudential supervision and involve macro-prudential supervision to avoid systemic risk. Capital requirements are tightening up and the quality of core capital is upgraded in order to provide greater coverage of losses and better risk management. In addition, a new framework for liquidity risk is introduced, as well as a complementary tool for limiting leverage. Recently, an agreement was reached in the EU to establish a Banking Union in the Eurozone, based on uniform regulation, supervision, bank clearing and deposit protection mechanisms. This framework includes a common banking capital for bank consolidation, which aims to reduce the impact on savers. This study aims to analyse the banking sector's activities and the constituent elements of the existing regulatory framework, particularly those involved in the causes of the financial crisis. It also aims to present the dimensions of the new regulatory framework for joint supervision leading to the European Banking Union and to analyse the pillars that form it, even though they are still in progress. The analysis will also build on the experiences from the recent crisis, in order to reach clear conclusions about the necessity and role of the Banking Union.
Authors and Affiliations
Grigorios Gikas, Evaggelia Kolovou, Kostantinos Kyritsis
Keywords
Related Articles
- EP ID EP486448
- DOI 10.24136/ceref.2018.009
- Views 111
- Downloads 0
CSR in automotive sector - leaders or deceivers? The case of Audi AG
Car production is a kind of activity that affects environment, society and global economy to a large degree. The most negative impact can be observed in the first of mentioned fields. Every day automotive companies consu...
Integration processes and marginal vertical β-convergence in the European Union Member States
The aim of the paper is to examine the connection between the intensity of integration processes and the real convergence process in the group of 28 member states of the European Union, with special regard to individual...
Econometric analysis of selected factors of innovative companies activity in the polish economy
Today, a particularly important role in the functioning and development of enterprises plays innovation. This is understood as the ability to create innovative space capable to the creation and diffusion of innovation. N...
The character and effects of sanctions imposed on Russia in consequence of aggression against Ukraine
The economic sanctions imposed on Russia have adversely affected the development of the Russian economy. Russia’s GDP has decreased, GDP growth rate has slowed down, global demand has declined, prices and interest rates...
Competitive Position of Central European Economies as Reflected in International Rankings
The aim of this paper is to analyze the development of the competitive position of Central European countries - Czech Republic, Poland, Slovakia and Hungary - in the light of international competitiveness rankings betwee...