Banking and capital markets
While the world was saved from financial instability during the pandemic, new developments in the European Union’s financial system are emerging.
While the COVID-19 pandemic has not led to financial instability thanks to effective European Central Bank intervention and major government interventions, new developments in the EU financial system are emerging.
Our researchers monitor financial sector developments and public policy responses, and make policy recommendations with a specific attention to the role of the financial sector to support the EU’s green and digital transitions.
Recently published and updated
The potential of sovereign sustainability-linked bonds in the drive for net-zero
Sovereign SLBs could help incentivise climate policies in EU countries, and accelerate emission reductions.
The Silicon Valley Bank collapse: Prudential regulation lessons for Europe and the world
In the EU, there is no bank like SVB and supervision appears better than in the US, but the resolution framework remains incomplete.
Fully reimbursing SVB depositors may prove to be a bad move (via CNN)
Reimbursing all SVB and Signature Bank depositors — even if their deposits are worth millions of dollars will have long-term impacts.
There are no shortcuts to finance
The basic underpinnings of regulation, reserves and (legal) recourse are missing in decentralised finance, or DeFi.
Liquidity risk, market power and the informational effects of policy
Digital Euro blurs the lines between money and politics
A central bank-backed digital currency would put the EU in the global vanguard when it comes to taking cash payments online.
Don’t look only to Brussels to increase the supply of safe assets in the European Union
A sufficient supply of safe assets denominated in euros is critical if the European Union is to achieve a full banking and capital markets union.
Upcoming events
Joining the dots: climate, nature and the sovereign debt crisis
The event is organised in collaboration with NatureFinance to discuss the correlation between sovereign debt markets and sustainability.
Corporate disclosure of sustainability risks: reconciling international and EU approaches
With parallel standards being developed in Europe and internationally, how can these approaches to sustainability reporting work together?