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

28/04/2025

Stability & Supervision

Response to Commission consultation on the market risk prudential framework
Report

02/10/2018

Stability & Supervision

Financial Regulation challenged by European Trade Policy

On 2 October 2018, the Veblen Institute and Finance Watch published a report on the impact of European trade policy on financial regulation.
Joint statement

18/07/2018

Stability & Supervision

Joint Statement: ECON’s draft report on the review of the European Financial Supervisors

Joint Statement by Finance Watch, Better Finance, Beuc, Coface Families Europe, Age Plateform Europe
Policy brief

27/02/2018

Stability & Supervision

Finance Watch Blueprint on the European System of Financial Supervision

In order to ensure that the European financial system operates in a way that protects consumers, investors and taxpayers we need strong European supervisory authorities that are appropriate staffed, financed and given...

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The blog corner

Stability & Supervision

Level:Regular

19.06.2025

Europe cannot sacrifice financial regulation to Trump’s economic warfare

Stability & Supervision

Level:Regular

05.06.2025

More risk, no reward? The strange revival of securitisation

Stability & Supervision

Level:Beginner

09.04.2025

The stage is being set for another financial crisis
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