Stability & Supervision | Finance Watch - Page 7

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

Consultation response

Response to the BCBS consultation on “Reducing variation in credit risk-weighted assets”

Speech

Speech at the EP Public hearing on Securitisation

Finance Watch’s Secretary General Christophe Nijdam made a statement on the Public hearing on Securitisation, organised by the Economic and Monetary Affairs (ECON) Committee at the European Parliament, on 13 June 2016.
Speech

Speech at the EC public hearing on the Call for Evidence – A review of the EU regulatory framework for financial services

Finance Watch’s Secretary General, Christophe Nijdam, gave a speech at the European Commission’s public hearing on the Public hearing on the “Call for Evidence on the EU regulatory framework for financial services – understanding...
Policy brief

Policy Brief “TLAC/MREL: Making failure possible?”

This note provides an update on recent developments in the area of bank recovery and resolution. It contains a brief primer of the current European Union (EU) bank resolution regime, in particular...
Factsheet

Cheat sheet: What is the “Better Regulation Package”?

In May 2015 the Commission introduced the Better Regulation Package […] to cut unnecessary red tape. The costs of regulation are easier to calculate than its benefits and industry lobbyists use this...
Factsheet

Cheat sheet: What is the Trading Book Review?

Background Actions of Finance Watch Key risks and our Publications on this dossier
Factsheet

Cheat sheet: What is Banking Union (SRM and SSM)?

Background; Actions of Finance Watch; Key risks; and our Publications on this dossier.
Factsheet

Cheat sheet: What are Benchmarks?

Benchmarks Key Issues A “benchmark” means any commercial index or published figure calculated by the application of a formula to the value of one or more underlying assets or prices, including estimated...
Factsheet

Cheat sheet: What is BRRD (Level 2)?

Bank Resolution Key Issues Our position We support the overall aim of the bank recovery and resolution framework which is to prevent bank failures becoming a systemic crisis affecting the rest of the financial...
Factsheet

Cheat sheet: What is CRA 3?

CRA 3 Key Issues A credit rating agency (CRA) provides opinions on the creditworthiness of entities such as companies or governments and of debt instruments such as bonds. The biggest three CRAs...
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