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

Speech

Speech at Financial Stability Conference 2017

Berlin, 18 October 2017 – Ten years after the onset of the most serious financial crisis in recent history, the EU’s financial framework is still not consistent and needs to be further strengthened...
Policy brief

Policy Brief “One step forward, two steps back”

Brussels, 7 June 2017 – Finance Watch, the public interest advocacy group working to make finance serve society, has published a new Policy Brief “One step forward, two steps back” with comments...
Speech

Public hearing at ECON on the banking legislation package

Finance Watch Senior Policy Analyst Christian Stiefmüller spoke on a panel at the European Parliament’s ECON Committee Public Hearing “Updating CRR, CRD, BRRD and SRMR: the new banking legislation package” on 25 April 2017.

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