Suchergebnisse

An anticipated benefit of the prospective European Banking Union is stronger supervision of European banks. Another benefit would be enhanced resolution of banks in distress. While national governments confine themselves to the domestic effects of a banking failure, a European Resolution Authority would follow a supranational approach, under which domestic and cross-border effects within Europe are incorporated. Using a model of recapitalising banks, this paper develops indicators to measure the efficiency improvement of resolution. Next, these efficiency indicators are applied to the hypothetical resolution of the top 25 European banks, which count for the vast majority of cross-border banking in Europe. Our cost-benefit analysis indicates that the UK, Spain, Sweden, and the Netherlands are the main beneficiaries and thus have the largest economic incentives to join Europe's Banking Union.

The volume brings together the work of sixteen scholars focused on the diverse debates surrounding the construction and operation of Banking Union (BU), and its necessary reform. BU represents one of the most important developments in European integration since the launch of Monetary Union. Furthermore, the design of the BU agreed between 2012 and 2014 was a messy compromise among EU member states. It is not surprising then that BU has sparked a lively academic debate and triggered an ever-growing number of publications from different disciplinary backgrounds. The first wave of academic work on BU focuses upon the economic rationale underpinning the supranationalisation of control over banking — regulation, supervision, support and resolution — and the political dynamics and legal issues that shaped the design of the Union agreed. This volume is located at the intersection of this first phase of academic research and a second stage which analyses the functioning of the different elements of BU. New research questions are triggered by the albeit limited empirical evidence on BU's implementation and operation. Contributions to this second wave of research attempt to identify potentially dangerous lacunae and contribute to on-going reform debates.

This paper discusses the impact of deregulation and market integration policies on the structure of European banking markets. The paper argues that whether European integration will lead to an increased exploitation of scale advantages, or not, will depend on the extent to which competition in banking is based on fixed or variable costs. If competition focuses on variable costs, concentration will diminish with market enlargement when we control for the pro-concentration effect triggered by the deregulation process. Alternatively, when competition focuses on expenses unrelated to the level of intermediation, concentration will not tend to decline as the size of the market grows. This is due to the compensating effect of increased competition in fixed costs such as brand image or electronic banking. I propose a simple test using aggregate data to provide an empirical assessment of the dominant form of competition. The application of this procedure to data for eleven EU countries during the period from 1981 to 1995 yields parameter estimates which indicate that over the period of analysis, competition in Europe tends to be predominantly based on variable costs.

Part I: Theory Of Banking Regulation And International Financial Standards -- Chapter 1: The Case for Banking Regulation -- Chapter 2: Key Aspects of Public International Financial Law – International Financial Standards -- Chapter 3: Key Institutional Aspects of the International Financial Architecture and an Interim Assessment -- Part II: European Banking Regulation (Law): Definition, Evolution And Sources -- Chapter 4: Definition and Evolution up to the Creation of the Banking Union -- Chapter 5: Developments after the Establishment of the Banking Union -- Chapter 6: The Legislative Acts which constitute the Sources of EU Banking Law -- Part III: European Banking Regulation (Law): Key Institutional Elements -- Chapter 7: The European Banking Authority (EBA) and its (Significant) Role in the Law-Making Process -- Chapter 8: The Single Supervisory Mechanism (SSM) -- Chapter 9: The Single Resolution Mechanism (SRM).

The establishment of banking union represents a major development in European economic governance and European integration history more generally. This book is informed by two main empirical questions: 'Why banking union?' and 'Why this specific form of banking union?'