Stability & Supervision | Finance Watch

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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3 PUBLICATIONS

Consultation response

Response to Commission consultation on the market risk prudential framework

Consultation response

Finance Watch response to the public consultation on the Europe 2020 strategy

Position paper

Finance Watch note “Too-big-to-fail in the EU”

Finance Watch has published a note (pdf, 12 pages – this note also exists in German and in French) that provides an overview of the EU financial regulations (passed or still in discussion) related...
Consultation response

Finance Watch responses to the ESMA MiFID II/MiFIR Level 2 Consultation and Discussion Papers

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