scholarly journals Should Denmark and Sweden Join the Banking Union?

2020 ◽  
Vol 6 (2) ◽  
pp. 317-326
Author(s):  
Svend E Hougaard Jensen ◽  
Dirk Schoenmaker
Keyword(s):  
Decision Making ◽  
Euro Area ◽  
Internal Market ◽  
Banking Union ◽  
Cross Border ◽  
Country Level ◽  
Important Policy ◽  
Pros And Cons ◽  
Policy Discussion ◽  
The Eu

Abstract An important policy discussion on joining the banking union is currently taking place in Denmark and Sweden. In this article we review the pros and cons of joining. The main rationale for joining the banking union is the importance of cross-border banking in the EU internal market. Reviewing the banking systems, we find that banks in Denmark and Sweden have the same cross-border characteristics as those in the euro area countries, suggesting a similar rationale for joining the banking union. Moreover, both countries have large banks which may be too big to save at country level, but not at the banking union level. Nevertheless, there are some governance concerns. While euro area countries have an automatic and full say in all banking union arrangements, the non-euro area countries (the ‘out’ countries) lack certain formal powers in ultimate decision-making; however, we find that this may be less of a problem in practice. If necessary, the ‘out’ countries would have the ‘nuclear option’ of leaving the banking union.

scholarly journals Multilevel cooperation in the EU resolution of cross-border bank groups: lessons from the non-euro area Member States joining the Single Resolution Mechanism (SRM)

2021 ◽  
Author(s):  
Agnieszka Smoleńska
Keyword(s):  
Euro Area ◽  
Banking Union ◽  
Member States ◽  
Essential Condition ◽  
European Banking Union ◽  
Cross Border ◽  
Single Resolution Mechanism ◽  
European Banking ◽  
Administrative Oversight ◽  
The Eu

AbstractCross-border banking presents a unique set of challenges in the EU from the perspective of arranging administrative oversight structures. Structuring cooperation between different EU and national authorities in a way which is conducive to trust-building and mutual engagement is an essential condition for overcoming disintegrative tendencies in the internal market. To assess how the existing EU arrangements fare in this regard in the context of EU resolution law, this article comparatively analyses the different models of multilevel administrative cooperation in the post-crisis EU framework. These are specifically the centralised model of the European Banking Union (Single Resolution Mechanism) and the relatively looser networked model of the resolution colleges. The multilevel cooperation under both models is nuanced given the distinct roles of the national resolution authorities, EU agencies and the differentiated status of non-euro area Member States in the EBU (Croatia, Bulgaria). The article’s findings allow to identify specific problems of constitutional nature pertaining to the accountability of administrative cooperation, equality of Member States and the implications of Meroni doctrine’s distortive effects.

scholarly journals Effects from Brexit on the EU-27 and the Euro Area Developments

2021 ◽  
Vol 1 (1) ◽  
pp. 17-25
Keyword(s):  
Decision Making ◽  
Euro Area ◽  
Banking Union ◽  
Decision Making Process ◽  
Integration Process ◽  
The United Kingdom ◽  
Opt Out ◽  
The Uk ◽  
The Eu ◽  
Stimulation Of

Brexit affects all the aspects of life, business and European integration process. It has strong implications also on the developments in the Euro Area despite the fact that the United Kingdom had the so-called “opt-out clause” for not adopting the single currency within the EU as well as despite the abstinence of the UK from participation in the Banking Union of the EU. The purpose of this study is to analyse some important aspects of the influence of Brexit on the EU-27 and the Euro Area developments. It is too early to draw final conclusions on the effects of Brexit on the EU-27 and the Euro Area developments. However, some possible implications may be outlined even today as for example the opportunity for consolidation of the Euro Area and its current reforms, possible implications for the EU decision making process and even a possible stimulation of the enlargement of the Euro Area.

scholarly journals Euro Crisis and the EMU Institutional Reforms

Equilibrium ◽  
2013 ◽  
Vol 8 (1) ◽  
pp. 7-31 ◽  
Author(s):  
Jarosław Kundera
Keyword(s):  
Euro Area ◽  
Debt Crisis ◽  
Essential Element ◽  
Monetary Integration ◽  
Banking Union ◽  
Fiscal Policies ◽  
Euro Crisis ◽  
Institutional Reforms ◽  
Political Union ◽  
The Eu

The main goal of this article is to find the answer for the question about the necessary reform to be undertaken in the EU to save the euro as a common currency. The author envisages three scenarios of the euro area’s future development. In his opinion, the most probable one are the institutional reforms in the euro area. The essential element of the reform is to establish a proper mix between the ECB’ monetary policy and fiscal policies in the member states. All proposed steps against the euro crisis are mutually correlated: monetary integration requires stricter fiscal integration, fiscal integration requires banking union, but banking union is going to require some form of a political union. This way the debt crisis in the euro area may present an opportunity to renew the strength of the European institutions.

European Cross-Border Banking and Banking Supervision

2020 ◽  
Author(s):  
Dalvinder Singh
Keyword(s):  
Home Country ◽  
Current System ◽  
Banking System ◽  
Central Banking ◽  
International Standards ◽  
Banking Union ◽  
Cross Border ◽  
Banking Institutions ◽  
Control Principle ◽  
The Eu

This book provides timely analysis of the cross-border exercise of banking activity in the EU and its supervision, from the perspective of the ‘home-host rule’. It examines the current system and the efficacy of recent reforms considering whether the centralization of decision making and a more effective mutualization of financing tools could increase the efficiency of the EU banking system. The EU banking market is very integrated since banking institutions based in the Union are free to perform their activities within the common market. This has allowed EU banking institutions to significantly increase their cross-border operations. This way of working is based on the home country control principle according to which EU institutions performing cross-border activities continue to be supervised by their home country supervisor. However, this system has raised challenges for effectively performing supervision and resolution. The book analyses how far recent reforms under the banking union regime have addressed these issues. It analyses the main pillars of the banking union. It also analyses how international standards and EU requirements undertake to divide responsibilities between the home and host state and the extent to which they align interests between the home and host and minimize potential conflicts of interests. The book provides a valuable resource for academics researching on central banking union and regulation, and helps legal practitioners to address questions of supervision, resolution, and insolvency with a cross-border element.

The opportunity for euro-area reform is closing

2019 ◽  
Keyword(s):  
Euro Area ◽  
Deposit Insurance ◽  
Insurance Coverage ◽  
Burden Sharing ◽  
Banking Union ◽  
Governance Reform ◽  
Content Type ◽  
European Banking Union ◽  
European Banking ◽  
The Eu

Subject Euro-area governance. Significance In the EU, macroeconomic governance reform is focusing around the creation of a euro-area budget and a European Deposit Insurance Scheme (EDIS) -- the final pillar for the completion of the European Banking Union (EBU) which would provide stronger insurance coverage for member states. However, northern countries are reluctant to pay for crisis-prone ones in the south, so compromise on detail could take years while the initiatives will have limited scope in responding to crises. Impacts The ECB’s Single Supervisory Mechanism will continue to focus on ‘risk reduction’ measures, including the disposal of non-performing loans. The EU is unlikely to give Italian budget concessions perceived as acceptable by Rome, possibly hardening the position of Italy’s populists. If Manfred Weber’s candidacy to become European Commission president fails, Berlin will likely insist that it gets the ECB president post. The rise of migration flows in the Mediterranean and the lack of EU resolution on burden-sharing will worsen north-south relations.

scholarly journals Not-So-Big and Big Credit Data Between Traditional Consumer Finance, FinTechs, and the Banking Union: Old and New Challenges in an Enduring EU Policy and Legal Conundrum

Global Jurist ◽  
2017 ◽  
Vol 18 (1) ◽  
Author(s):  
Federico Ferretti
Keyword(s):  
Financial Markets ◽  
Business Models ◽  
National Level ◽  
Internal Market ◽  
Management Tool ◽  
Banking Union ◽  
Prudential Supervision ◽  
Consumer Data ◽  
Credit Data ◽  
The Eu

Abstract This paper discusses the role and usage of traditional and non-traditional consumer data in the retail financial markets of the European Union in the context of the economic theories, policies, and law within which they work. Across Europe there is no common practice of using the credit data of consumers, which can be exploited for several purposes. Traditionally, they are used by the lending industry as a risk-management tool to underwrite borrowing decisions or price risks, but they can also be used as a practice of creditworthiness assessment. In some Member States, consumer data are part of a broader information centralisation system for the prudential supervision of banks and the financial system as a whole. Within this already complex picture, emerging technologies and the processing of new generations of personal data are starting to give way to new business models that can transform retail financial markets (Fintechs). Whatever the function the data perform, their source, type, breath, and depth differ greatly from country to country. Unlike for the harmonisation of EU rules on credit to consumers for the creation of the internal market, the underlying consumer data infrastructure remains fragmented at national level, failing to achieve univocal, common, or defined policy objectives under a harmonised legal framework. Likewise, the establishment of the Banking Union and the prudential supervision of the Euro-area demand standardisation and convergence of the data used to measure debt levels, arrears, and delinquencies. The many functions and different usages of credit data suggest that the policy goals to be achieved should inform the design and structure of the databases, as well as the role, legal, and institutional framework of the organisations managing the data system (the Data Brokers). This is also because fundamental rights and consumer protection concerns arise from the dissemination and sharing of traditional and non-traditional data, as well as from their expanding uses. This is an area of the EU internal market that demands the attention of the EU legislator without further delays.

scholarly journals Small and medium sized enterprises (SMEs) and transfer pricing

2012 ◽  
Vol 60 (2) ◽  
pp. 349-356
Author(s):  
Veronika Solilová
Keyword(s):  
Home Country ◽  
Transfer Pricing ◽  
Internal Market ◽  
International Taxation ◽  
Member States ◽  
Compliance Costs ◽  
Cross Border ◽  
Tax Systems ◽  
Important Position ◽  
The Eu

Small and medium sized enterprises have very important position in the EU economy, mainly in the area of growth and employment. However, most of SMEs are active only in their home country and only a few of them participate in cross-border activities. Furthermore, their activities in the internal market are limited by great deal of obstacles, mainly in the form of different tax systems which generate excessive compliance costs of taxation and the existence of different SMEs definitions for various purposes in Member states. In addition, from the view of the international taxation issues, the most important obstacles can be considered a transfer pricing and cross-border loss compensations. In this area, SMEs are facing specific problems and have specific needs. The aim of the paper is to analyze and evaluate the specific transfer pricing issues of SMEs and propose recommendations for them.

scholarly journals Comparison Between Bulgaria and Croatia in their Road Towards ERM II and The Banking Union of the EU

2021 ◽  
Vol 61 (5) ◽  
pp. 263-276
Keyword(s):  
Member State ◽  
Euro Area ◽  
The Other ◽  
Banking Union ◽  
Single Currency ◽  
Other Hand ◽  
Close Cooperation ◽  
The Eu

The last ERM II accession before July 2020 was in 2005. After the establishment of the Banking Union of the EU, starting from 2014, there was no enlargement of ERM II by EU Member State that is outside the Euro area. Therefore, the accession on 10 July 2020 of Bulgaria and Croatia to the ERM II on one hand and to the Banking Union on the other hand through the mechanism of the so-called close cooperation with the ECB represents a particular interest. The participation in these two mechanisms is a precondition for the accession to the Euro area and the adoption of the single currency. The comparison between the two countries shows that their path to the ERM II and the Banking Union is quite similar. However, there are also few peculiarities.

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