bank resolution

Read article More on this topic
 

Blog Post

Economic recovery after COVID-19 requires a clear vision for a healthy banking sector

The EU framework for crisis management and state aid in the banking sector urgently needs updating.

By: Alexander Lehmann and Reiner Martin Topic: Banking and capital markets Date: December 16, 2020
Read article
 

Blog Post

Europe’s banking union should learn the right lessons from the US

In revived discussions on European banking union, some have suggested a new regime to deal with failing banks, alongside existing ones, drawn from parts of the United States’ bank resolution framework. This fragmented approach could be counterproductive. Europe should adopt a unitary regime, like the US, that applies to all banks irrespective of size.

By: Anna Gelpern and Nicolas Véron Topic: Banking and capital markets, Macroeconomic policy Date: October 29, 2020
Read about event More on this topic
 

Past Event

Past Event

Tackling too-big-to-fail banks: have the reforms been effective?

Evaluation of the global reforms implemented to deal with "too-big-to-fail banks".

Speakers: Alexandre Birry, Claudia M. Buch and Nicolas Véron Topic: Banking and capital markets Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: July 9, 2020
Read article Download PDF More on this topic
 

External Publication

European Parliament

Impediments to resolvability of banks

This paper gives an overview of the seven aspects of resolvability defined in 2019 by the Single Resolution Board, and then assesses progress in two key areas, based on evidence gathered from public disclosures made by the 20 largest euro-area banks. The largest banks have made good progress in raising bail-in capital. Changes to banks’ legal and operational structures that will facilitate resolution will take more time. Greater transparency would make it easier to achieve the policy objective of making banks resolvable.

By: Alexander Lehmann and Bruegel Topic: European Parliament Date: December 18, 2019
Read about event More on this topic
 

Past Event

Past Event

Recovery and Resolution Planning for Europe’s cross-border banks

This workshop will discuss recovery and resolution plans in the CEE countries

Speakers: Sebastiano Laviola, Alexander Lehmann, Boris Vujčić, Alexander Benkwitz, Roland Mechtler, Sofia Toscano Rico, Krzysztof Broda, Radek Urban, Dejan Vasiljev, Emil Vonvea and Guntram B. Wolff Topic: Banking and capital markets Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: December 6, 2019
Read article More on this topic More by this author
 

Blog Post

European bank resolution plans are undermined by a lack of transparency

The discussions of the now-aborted merger of Germany’s two largest banks underlined supervisors’ concerns over creating banks that are too big or too complex to fail. While European banks are increasingly funded through securities that could be subject to a bail-in, transparency over how any resolutions would unfold is as yet very poor.

By: Alexander Lehmann Topic: Banking and capital markets Date: May 15, 2019
Read article More on this topic
 

Blog Post

Developing resilient bail-in capital

Europe’s largest banks have made progress in issuing bail-inable securities that shelter taxpayers from bank failures. But the now-finalised revision of the bank resolution directive and a new policy of the SRB will make requirements to issue such securities more onerous for other banks. In order to strengthen banking-system resilience, EU capital-market regulation should facilitate exposures of long-term institutional investors.

By: Bruegel and Alexander Lehmann Topic: Banking and capital markets Date: April 29, 2019
Read article Download PDF
 

External Publication

European Parliament

Taking stock of the Single Resolution Board: Banking union scrutiny

The Single Resolution Board (SRB) has had a somewhat difficult start but has been able to learn and adapt, and has gained stature following its first bank resolution decisions in 2017-18. It must continue to build up its capabilities, even as the European Union’s banking union and its policy regime for unviable banks continue to develop.

By: Nicolas Véron and Bruegel Topic: European Parliament, Macroeconomic policy, Testimonies Date: April 18, 2019
Read article More on this topic
 

Blog Post

Providing funding in resolution: Unfinished business even after Eurogroup agreement on EMU reform

The recent Eurogroup agreement on euro-area reform foresees a greater role for the European Stability Mechanism (ESM) as a backstop to the banking union. This is a welcome step forward but important issues remain. We assess the agreement on how to fund banks after resolution and the best way to organise the fiscal role in liquidity provisioning to banks. We argue that the bank resolution framework will remain incomplete and its gaps could result in important financial instabilities.

By: Maria Demertzis and Guntram B. Wolff Topic: Macroeconomic policy Date: December 7, 2018