Suchergebnisse

AbstractThe EU strives to harmonize banking regulation, while its member states continue to insist on a degree of differentiation to accommodate national specifics. A new data set of national options and discretions (O&Ds) embedded in EU banking legislation facilitates systematic analysis of member states' policy preferences across multiple policy cycles. Its results suggest that states' O&D choices are related to their respective variety of banking capitalism. Coordinated and liberal market economies choose O&Ds to protect distinct subsets of regulatory parameters delaying full harmonization. Dependent market economies on the Eastern periphery use O&Ds to prevent the outflow of capital from foreign‐owned subsidiaries under their jurisdiction. These deep institutional roots suggest that many O&Ds will be carried over to the upcoming generation of EU banking legislation, despite the increased harmonization pressures in the banking union.

The post-2007 financial crisis created an opportunity for reforms that could close the regulatory gap between transnational banks and national bank resolution regimes. During the decade before the crisis, the European Union tried to develop a cross-border bank resolution regime relying on voluntary agreements and complex governance networks. However, these arrangements failed to commit national authorities to multilateral resolution as was exemplified by the case of Fortis. The crisis experience provided the Commission with an opportunity to propose legislation that would either deepen the pre-crisis co-ordinated regime, or replace it with an integrated resolution regime for systemically important cross-border banks. The Commission considered the more ambitious reforms, but after the experience with negotiations over the powers of European Supervisory Authorities, postponed the proposals for an integrated regime until after 2014. The initial round of post-crisis reforms thus remained limited to minimal improvements of the pre-crisis status quo. Adapted from the source document.