Regulatory response to the financial crisis in Europe: recent developments (2010-2013)

2015 ◽  
Vol 7 (1) ◽  
pp. 29-50 ◽  
Author(s):  
Santiago Carbó-Valverde ◽  
Harald A. Benink ◽  
Tom Berglund ◽  
Clas Wihlborg
Keyword(s):  
Financial Crisis ◽  
Financial Stability ◽  
Sovereign Debt ◽  
Financial Regulation ◽  
Ad Hoc ◽  
Debt Crisis ◽  
Banking Union ◽  
Content Type ◽  
European Banking Union ◽  
Wide Range

Purpose – The purpose of this paper by the European Shadow Financial Regulatory Committee (ESFRC) is to provide an account of the financial crisis in Europe during the period 2010-2013 and an analysis of how the relevant authorities reacted to the crisis. Design/methodology/approach – These actions included measures taken by central banks, governments or fiscal authorities, and by regulatory or supervisory bodies. In a previous study covering the regulatory developments during the financial crisis up until 2009, issues such as the implementation of Basel III rules in Europe and the (mostly ad hoc and unilateral) resolution mechanisms set in most European countries to fight the crisis were covered. This study focuses on developments since 2010 with a focus on the concerns and actions that emerged with the sovereign debt crisis in the euro area. In particular, the transition from the European Financial Stability Facility to the European Stability Mechanism is assessed. The focus after 2012 has progressively turned to the challenges of the European banking union. Findings – These issues are jointly covered, along with some updates on the views of the ESFRC on recent advances in other areas, such as solvency regulation. All in all, the authors find that the weaknesses of the global financial system remain to be addressed, and they believe that the banking union is one of the main tools and opportunities for an improved and efficient crisis management in Europe. Originality/value – The paper aims at contributing to the study of financial regulation after the banking crisis. The experience of the euro zone in this context is assessed in this article from a wide range of perspectives.

Greek Debt Restructuring Case

2021 ◽  
Vol 195 ◽  
pp. 227-238
Keyword(s):  
International Law ◽  
Financial Stability ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Secondary Market ◽  
Federal Republic Of Germany ◽  
Debt Restructuring ◽  
Content Type ◽  
State Immunity ◽  
Basic Law

227State immunity — Jurisdictional immunity — Exceptions — Acta jure gestionis — Acta jure imperii — Once a trader always a trader — State of emergency — Law-making — Legislature regulating legal relations initially established by acta jure gestionis qualifying as acta jure imperiiEconomics, trade and finance — European Monetary Union — Hellenic Republic — Public debt — Bonds — Greek sovereign debt crisis — Sovereign debt restructuring — Collective Action Clauses — Secondary market — Bond exchange — Financial stabilityRelationship of international law and municipal law — Compatibility with Basic Law of the Federal Republic of Germany — General principle of international law — Article 25 of German Basic Law — Right to a lawful judge — The law of Germany

5. Bank Supervision in Practice: The Case of the UK and of the European Banking Union

2018 ◽  
Author(s):  
Ross Cranston ◽  
Emilios Avgouleas ◽  
Kristin van Zweiten ◽  
Theodor van Sante ◽  
Christoper Hare
Keyword(s):  
Financial Services ◽  
Financial Stability ◽  
Debt Crisis ◽  
Banking Union ◽  
Financial Policy ◽  
Regulatory Structure ◽  
Bank Supervision ◽  
European Banking Union ◽  
European Banking ◽  
The Uk

This chapter discusses banking supervision in practice. It focuses on two jurisdictions: the UK and the European Banking Union (EBU), and considers in particular the type of powers enjoyed by the UK and EBU regulators, and the way they exercise them in their supervisory approaches. In the process the chapter highlights loopholes in the respective regimes and to some extent evaluates their effectiveness. On 1 April 2013 the Financial Services Act 2012 came into force, removing the Financial Services Authority and delivering a new regulatory structure for the UK, which comprises the Prudential Regulation Authority responsible for microprudential regulation and supervision of banks, building societies, and investment firms; and the Financial Conduct Authority, in addition to a financial stability (macroprudential) body within the Bank of England, the Financial Policy Committee. The EBU brought about the centralization of bank supervision and resolution within the Eurozone. The trigger for the establishment of the EBU was the Eurozone debt crisis.

Oil volatility index and Chinese stock markets during financial crisis: a time-varying perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Panayiotis Tzeremes
Keyword(s):  
Financial Crisis ◽  
Sovereign Debt ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Subprime Crisis ◽  
Content Type ◽  
Volatility Index ◽  
The Us ◽  
Three Stages ◽  
The Global Financial Crisis

Purpose This study aims to examine the interconnection among the oil volatility index (OVX) and the Chinese stock markets (CSM) during the financial crisis over the period June 1, 2007 to June 26, 2012. Design/methodology/approach Applying the time-varying Granger causality test, this paper conducts an exhaustive analysis of the OVX and the CSMs during the financial crisis. In particular, the financial crisis is classified in three stages, namely, the US subprime crisis, the global financial crisis and the sovereign debt crisis. Findings Briefly, the findings indicate almost a neutral relationship between the OVX and the CSMs during the entire financial crisis, the US subprime crisis and the global financial crisis. Finally, this paper has found a positive relationship between the OVX and the CSMs during the sovereign debt crisis. Practical implications This outcome clearly suggests that Chinese investors have to disregard uncertain information. In addition, policymakers can ameliorate the willingness of market investors in the CSM and further deepen the market-oriented reform of China’s domestic oil prices. Originality/value The innovative combination of these two strands, the OVX and the three stages of the financial crisis, is empirically examined in the study and this paper finds a non-linear linkage between the OVX and CSMs.

scholarly journals International Financial and Monetary Law

2015 ◽  
Author(s):  
Lastra Rosa
Keyword(s):  
Crisis Management ◽  
Financial Stability ◽  
Sovereign Debt ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Central Banking ◽  
Financial Supervision ◽  
Banking Union ◽  
Lender Of Last Resort ◽  
The Law

This book studies the international monetary and financial system from a legal perspective. The new edition has been renamed to reflect the book's breadth of coverage, which includes an in-depth study of central banking, a fresh look at supervision, regulation and crisis management after the global financial crisis and updated material on the law of the European Central Bank (and its responses to the twin banking and sovereign debt crisis in the eurozone), Banking Union, the law of the International Monetary Fund (IMF) and work undertaken by international standard-setters, in particular the Financial Stability Board (FSB) and the Basel committee on Banking Supervision. The book is divided into three parts. The first part focuses on national developments, the second part deals with EU developments, and the third part examines international developments. There is a certain symmetry among the three parts of the book (which has been preserved in the second edition) each one of them commencing with a historical chapter, analyzing then the framework of the ‘monetary architecture’ and ending up with a consideration of the ‘financial architecture’ with regard to the functions of financial supervision (micro and macro) and surveillance, regulation, and crisis management, including lender of last resort and resolution.

scholarly journals The Role of Financial Globalization in the Propagation of the World Financial Crisis

2019 ◽  
Vol 7 (2) ◽  
pp. 22-31
Author(s):  
M. Zharikov
Keyword(s):  
Financial Crisis ◽  
Emerging Markets ◽  
Financial Stability ◽  
Sovereign Debt ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Early 21St Century ◽  
The Great Depression ◽  
The World ◽  
The Global Financial Crisis

This article is specifically devoted to financial globalisation and financial crises in the early 21st century. Obviously, it is a topic everyone is interested in after the global financial crisis of 2008–2010, the worst global financial crisis since the Great Depression. Its effects are still felt across the world today. Both industrial and emerging countries still suffer from high unemployment. In some of them, GDP has not yet reached pre-crisis levels. And this global crisis — if it were not enough — was followed very quickly by the Eurozone’s sovereign debt crisis, which even though Ireland and now just recently Portugal have returned to private borrowing markets, is not resolved at all and is pretty much in remission but could come back. Lately, there have been concerns about emerging markets, including the BRICS, starting in 2016. There are various tremors in the emerging markets, capital outflows and currency depreciation. So, all over the world, one can see events that potentially cause questions about financial stability, which is an especially acute issue to look at.

Trade credit in times of crisis: evidence from European SMEs

2018 ◽  
Vol 25 (2) ◽  
pp. 277-293 ◽  
Author(s):  
Candida Bussoli ◽  
Francesca Marino
Keyword(s):  
Financial Crisis ◽  
Sovereign Debt ◽  
Trade Credit ◽  
Debt Crisis ◽  
Sovereign Debt Crisis ◽  
Content Type ◽  
Accounts Payable ◽  
Before And After ◽  
Credit Channels ◽  
The Impact

Purpose The purpose of this paper is to investigate the use of trade credit in a sample of small and medium enterprises in Europe, before and after the outbreak of the subprime financial crisis and the sovereign debt crisis (2006-2013). This study aims to verify whether trade credit is an alternative source of funding compared to other sources of financing. In addition, it tests whether firms that grant extended payment terms to their customers demand delayed accounts payable terms from their suppliers. Design/methodology/approach The empirical analysis is conducted on a sample of European SMEs that were observed over the period immediately before and after the outbreak of the subprime crisis (2008) and the sovereign debt crisis (2010-2011). A panel data analysis is conducted using the generalized method of moment. Findings The results suggest that SMEs with a high probability of insolvency use trade credit more extensively. Distressed and weaker SMEs are less able to match accounts receivable to accounts payable. Finally, the evidence suggests that during the financial crises, the substitution hypothesis is weakened and liquidity shocks are propagated through trade credit channels. Originality/value This study contributes to the extant literature as very few studies have analyzed intercompany financing for European SMEs during periods of financial crisis. The results suggest that supporting trade credit channels, through timely injections of liquidity to companies, could reduce the impact of both financial and intercompany credit crunch on SMEs.

Financial Stability as the Objective of the Banking Union

2020 ◽  
Vol 17 (2) ◽  
pp. 155-183
Author(s):  
Jonathan Bauerschmidt
Keyword(s):  
European Union ◽  
Financial Stability ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Banking Union ◽  
Sovereign Debt Crisis ◽  
The European Union ◽  
Legislative Measures

The European financial and sovereign debt crisis has fundamentally transformed the banking landscape in the European Union. In order to break the dependence between banks and sovereigns, the European legislator has created a Banking Union. The objective of these legislative measures is financial stability. How can this term be understood and what is the significance of financial stability for the Banking Union? This contribution aims to answer these questions

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