Cross-Border Asset Pledgeability for Enhanced Financial Stability

2018 ◽  
Author(s):  
Gongpil Choi
Keyword(s):  
Financial Stability ◽  
Cross Border

scholarly journals European Banking Network in Light of the Single Supervisory Mechanism from the Network Analysis Perspective

2015 ◽  
Vol 6 (1) ◽  
pp. 35-57 ◽  
Author(s):  
Mária Širaňová
Keyword(s):  
Network Analysis ◽  
Financial Stability ◽  
Geographic Distance ◽  
Topological Properties ◽  
Economic Space ◽  
Single Supervisory Mechanism ◽  
Cross Border ◽  
European Banking ◽  
Positive Step ◽  
Over Time

In this paper we discuss the topological properties of the European banking network and its evolution over time based on the BIS consolidated banking statistics data exploiting information from complex network analysis. Our conclusions are discussed in light of the soon-to-be-launched Single Supervisory Mechanism that takes into account, among other things, the significance of cross-border activity as a precondition for specifying the systemically important European credit institutions. According to our results, the banking network of the EU13 economic space can be characterized as highly asymmetric with a tendency to create clusters based on geographic distance and cultural and social similarities. Additionally, the highly exposed countries are usually dependent on a small number of major creditors while creditor countries tend to spread their power over dependent countries more equally. We advocate that the presence of heterogeneity and asymmetry in the network and a decrease in the level of foreign banking across Europe could be mitigated by the introduction of SSM, and from this perspective it should be viewed as a positive step towards greater financial stability.

Default of Systemically Important Financial Intermediaries: Short-term Stability versus Incentive Compatibility?

2013 ◽  
Vol 14 (1) ◽  
pp. 15-30 ◽  
Author(s):  
Andreas Dombret ◽  
André Ebner
Keyword(s):  
Financial Institutions ◽  
Financial Stability ◽  
Financial Integration ◽  
Incentive Compatibility ◽  
Financial Intermediaries ◽  
Entry And Exit ◽  
Short Term ◽  
Market Participants ◽  
Cross Border ◽  
Crucial Feature

Abstract Financial integration and globalization have acted as a major stimulus in the development of large, internationally operating banks, which not only provide cross-border services but also have a local presence. While these banks are themselves drivers of economic integration, they can pose serious threats to financial stability. Their size, interconnectedness and importance as providers of specific services mean that financial institutions can be too-systemic-to-fail (TSTF). Since the entry and exit of market participants is a crucial feature of well-functioning markets, the absence of any credible possibility of failure leads to serious distortions. This analysis gives an overview of the TSTF problem and discusses the challenges to be faced in establishing credible resolution regimes.

Cross-border banking and financial stability in the EU

2008 ◽  
Vol 4 (3) ◽  
pp. 168-204 ◽  
Author(s):  
Robert A. Eisenbeis ◽  
George G. Kaufman
Keyword(s):  
Financial Stability ◽  
Cross Border ◽  
The Eu

scholarly journals MODERN TRENDS OF PRIVATE PENSION INSTITUTIONS DEVELOPMENT IN THE EUROPEAN UNION

2017 ◽  
pp. 124-132
Author(s):  
Zhanna Dovhan ◽  
Igor Kravchuk
Keyword(s):  
Financial Stability ◽  
Private Pension ◽  
Minor Role ◽  
Occupational Pension ◽  
Defined Benefit ◽  
The European Union ◽  
Financial Industry ◽  
High Concentration ◽  
Pension Systems ◽  
Cross Border

Introduction. Current demographic trends and social and economic models initiate the challenges regarding the possibility of adequate pension provision of the population in many European countries. International organizations forecasts confirm the need to diversify the sources of pension benefits to the population by accelerating the development of private pension institutions. At the same time effective regulation environment of pension assets management should be provided. It must be done because of their important social value and interrelationship with financial markets, in particular in the aspect of their stable functioning. Purpose. The article aims to identify the key elements of the financial institutions functioning regarding pension assets managing in the European market. They can be determinants of the intensification of regulation modernization of private pension sector in terms of social and financial stability. Method (methodology). Structural and dynamics and correlation analysis of the private pension institutions activities in the European financial market have been considered in this research. Results. The features of EU private pension systems modern trends have been determined. They indicate an increase in financial fragility (in some countries) through the predominance of structures with a defined benefit among occupational pension programs. They also show a growth of share of more risky investments in the instruments of collective investment institutions in the structure of pension investment portfolios, high concentration of cross-border pension assets, sensitivity to cross-border contagion, taking into consideration the low values of home bias and the strategies homogeneity. Low levels of private pension programs coverage of the population, as well as a minor role in the economy (the ratio of pension assets to GDP) in many EU countries demonstrate the feasibility of stimulation the financial industry development. The key characteristics determine the necessity of development of prudential regulations (reduction of pension systems fragility), and stimulation regulations (standards implementation for the development of pan-European personal pension products, which will be standardized by main characteristics).

EU Bank Regulation after the Great Financial Crisis

2021 ◽  
pp. 163-182
Author(s):  
Agnieszka Smoleńska
Keyword(s):  
European Union ◽  
Financial Crisis ◽  
Financial Stability ◽  
Banking Sector ◽  
Regulatory Regime ◽  
The European Union ◽  
Financial Repression ◽  
Cross Border ◽  
Crisis Prevention ◽  
New Framework

The chapter outlines the main features of the post-crisis regulatory regime for banks in the European Union. It traces the evolution of the approach taken by EU legislators which transformed the deregulation which prevailed prior to the Great Financial Crisis (GFC) into a regulatory regime which though far from financial repression known in the 1970s, is oriented towards functionally prioritizing financial stability and banks’ functions in the broader economy. This is achieved through co-responsibilization of the banking sector for public objectives, explicit regulation of structure and operations as well as far-reaching powers granted to new oversight authorities. The chapter explains the features of such a new bespoke regulatory regime for EU cross-border banking drawing on the new framework for bank crisis prevention and management, that is EU resolution law.

Cross-Border Banking in Europe and Financial Stability

2013 ◽  
Vol 16 (1) ◽  
pp. 1-22 ◽  
Author(s):  
Dirk Schoenmaker ◽  
Wolf Wagner
Keyword(s):  
Financial Stability ◽  
Cross Border

New Regulation and the New World of Global Banking

2011 ◽  
Vol 216 ◽  
pp. R29-R40 ◽  
Author(s):  
Stephen G. Cecchetti ◽  
Dietrich Domanski ◽  
Goetz von Peter
Keyword(s):  
Financial Stability ◽  
Business Models ◽  
Balance Sheets ◽  
Cross Border ◽  
Ongoing Work ◽  
Global Banking ◽  
New Business ◽  
New Business Models ◽  
Global Banks ◽  
Liquidity Regulation

Global banks are changing. With a new set of rules come new business models. We review the international dimension of the financial crisis, centring on cross-border losses and cross-currency funding problems that prompted authorities to adopt wide-ranging rescue measures and liquidity operations. Against this background, we proceed to examine the regulatory response, focusing on the Basel III framework and the ongoing work of the Basel Committee and Financial Stability Board regarding the amount of capital banks are required to hold, restrictions on maturity transformation on banks' balance sheets and proposals to mitigate the risks posed by systemically important financial institutions. Our conclusion is that capital and liquidity regulation will have distinctly different effects on the international organisation of banks. Liquidity regulation, especially when applied locally, has the greatest potential to reshape the global banking landscape.

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