Stability & Supervision | Finance Watch - Page 14

Policy portal Stability & Supervision

When trust in the financial system disappears, panic sets in: fire sales of financial assets and bank runs can make the entire system collapse. Taxpayers are forced to bail out “too-big-to-fail” institutions to protect essential economic functions (deposits, credit, payment systems).

Mitigating implicit “moral hazard” requires sound prudential policies protecting essential banking services from excessive risk-taking and maintaining adequate capital levels to cover possible losses. Well-resourced, and independent supervision is also key. Finally, prudential regulation must also respond to new risks related to digitalisation (see “Digital Finance”) and climate change (see climate risk under “Sustainable Finance”).

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148 PUBLICATIONS

Consultation response

Response to Commission consultation on the market risk prudential framework

Open letter

Open letter to Commission on WTO rules and financial services

Open letter to EU Trade Commissioner, Karel De Gucht, potential inconsistencies between WTO rules and the EU’s proposed financial reforms, co-signed by Finance Watch, BEUC, SOMO, EuroFinuse and the Financial Services User Group. Press release...
Speech

Oral evidence to Parliament on LIBOR/EURIBOR

Finance Watch today testified to the Committee on Economic and Monetary Affairs (ECON) of the European Parliament at a Public Hearing on “Tackling the culture of market manipulation – global action post Libor/Euribor”....
Consultation response

Response to Parliament questionnaire on LIBOR and EURIBOR

Consultation response

Response to EC shadow banking consultation

Consultation response

Response to Liikanen HLEG Consultation

Report

“Basel 3 in 5 Questions – Keys to understanding Basel 3”

Press release 17 May 2012
Position paper

MiFID II position paper “Investing not betting”

Position paper “Investing not betting” on MiFID II, the EU’s revised Markets in Financial Instruments Directive. Press release 24 April 2012.
Speech

Evidence to Liikanen hearing

Evidence given at hearing before the High-level Expert Group (HLEG) on possible reforms to the structure of the EU banking sector, led by Erkki Liikanen. Press release 14 May 2012 Speech
Open letter

Letter to US Senate Banking Committee

Finance Watch letter to the U.S. Senate Committee on Banking, Housing and Urban Affairs urging the United States not to weaken its stance on Dodd-Frank and the Volcker Rule. Press release 29 March...
Factsheet

Cheat sheet: Short selling / naked CDS

Short selling involves selling a security one does not own and replacing it with one bought at a later date to benefit from a fall in price. Credit default swaps (CDS) are...
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