The Importance of Regulations Included in the SSM and SRM in Securing the Financial Stability of the Banking Sector in the EU
Journal Title: Zeszyty Naukowe Wyższej Szkoły Bankowej w Poznaniu - Year 2019, Vol 84, Issue 1
Abstract
In response to the financial crisis of 2008-2009, European Union countries established the Single Supervisory Mechanism and the Single Recovery Mechanism. Their main goal is to ensure financial stability, safety and soundness of credit institutions and to limit the costs of bank failures to taxpayers and the economy. Over four years have passed since the establishment of both mechanisms, which justifies an attempt to assess their effectiveness in securing the stability of the sector. The analysis was carried out using data from case studies of four banks: Italian Monte dei Paschi di Siena, Veneto Banca, Banca Popolare di Vicenza and Spanish Banco Popular Español. Their capital deficiencies were diagnosed in stress tests in 2014, and they were announced as being “fail or likely to fall” by the ECB in the first half of 2017. The article points out both the strengths and weaknesses of the recovery and resolution processes carried out during the last years under the SRM framework and presents proposals for further actions to strengthen the stability of the EU banking sector in the future.
Authors and Affiliations
Joanna Żabińska, Małgorzata Zielińska-Bieniek
Keywords
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- EP ID EP623139
- DOI 10.26349/zn.wsb.w.poznaniu.0084.01
- Views 103
- Downloads 0
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