The Need for Special Resolution Regimes for Financial Institutions—The Case of the European Union

The Need for Special Resolution Regimes for Financial Institutions—The Case of the European Union
Author: Mr.Martin Cihak
Publisher: International Monetary Fund
Total Pages: 31
Release: 2009-09-01
Genre: Business & Economics
ISBN: 1451873476

The global financial crisis has demonstrated weaknesses in resolution regimes for financial institutions around the globe, including in the European Union (EU). This paper considers the principles underlying resolution regimes for financial institutions, and draws out how a well-designed resolution regime can expand the toolset available for crisis management. Introducing, or in some cases expanding the scope, of these regimes is pressing to achieve more effective responses to ongoing financial sector weaknesses across the EU.

A Banking Union for the Euro Area

A Banking Union for the Euro Area
Author: Rishi Goyal
Publisher: International Monetary Fund
Total Pages: 31
Release: 2013-02-12
Genre: Business & Economics
ISBN: 1475569823

The SDN elaborates the case for, and the design of, a banking union for the euro area. It discusses the benefits and costs of a banking union, presents a steady state view of the banking union, elaborates difficult transition issues, and briefly discusses broader EU issues. As such, it assesses current plans and provides advice. It is accompanied by three background technical notes that analyze in depth the various elements of the banking union: a single supervisory framework; a single resolution and common safety net; and urgent issues related to repair of weak banks in Europe.

Bail-ins and Bank Resolution in Europe

Bail-ins and Bank Resolution in Europe
Author: Thomas Philippon
Publisher: Geneva Reports on the World Ec
Total Pages: 55
Release: 2017
Genre: Business & Economics
ISBN: 9781912179008

The 4th Special Report in the Geneva Reports on the World Economy series reviews the current status of bail-ins and bank resolution in Europe. It first provides a critical comparison of the US and EU bank resolution rules, including the underlying similarities, differences and enhancement points of both frameworks. It then goes on to focus on European banking failures, providing estimates of taxpayer costs and considering the hypothetical application of stronger private sector bail-in consistent with the spirit of the Bank Resolution and Recovery Directive. The report ends with a number of policy recommendations concerning governance, stress testing, cross-border issues and resolution of financial contracts.

Ireland

Ireland
Author: International Monetary Fund. Monetary and Capital Markets Department
Publisher: International Monetary Fund
Total Pages: 66
Release: 2022-07-07
Genre: Business & Economics
ISBN:

Ireland has considerably strengthened financial sector regulation and supervision since the 2016 FSAP, aided by the ECB/SSM, and is working with European and international regulators to strengthen oversight of the large market-based finance (MBF) sector. This strengthening is evidenced by a successful navigation through the challenges of Brexit and the pandemic. Despite global headwinds, Ireland is exiting the pandemic with strong economic growth and a highly capitalized and liquid banking system. The financial system has grown rapidly and in complexity, especially after Brexit, and Ireland has become a European base for large financial groups. The MBF sector has grown to the second largest in Europe, with global interlinkages.

Cross-Border Bank Resolution - Recent Developments

Cross-Border Bank Resolution - Recent Developments
Author: International Monetary Fund
Publisher: International Monetary Fund
Total Pages: 41
Release: 2014-02-06
Genre: Business & Economics
ISBN: 1498343287

Developing an effective framework for cross-border resolution is a key priority in international regulatory reform. Large bank failures during the global financial crisis brought home the lack of adequate tools for resolving “too-big-to-fail” institutions. In cross-border cases, misaligned incentives and lack of robust mechanisms for resolution and cross-border cooperation left some country authorities with little choice but to take unilateral actions, which contributed to the high fiscal costs of the crisis and resulted in disorderly resolution in some cases

Cyprus Bail-in, The: Policy Lessons From The Cyprus Economic Crisis

Cyprus Bail-in, The: Policy Lessons From The Cyprus Economic Crisis
Author: Alexander Michaelides
Publisher: World Scientific
Total Pages: 365
Release: 2016-02-29
Genre: Political Science
ISBN: 1783268778

On June 28th 2012, the small island of Cyprus became the fifth government to request an economic bail-out from the Eurozone after losing access to international capital markets. Less than a year later, a €10 billion second rescue deal was agreed upon — an unprecedented agreement that bailed in creditors of Cyprus' two largest banks, and triggered an economic crisis that the nation still struggles to recover from today.This resourceful collection of essays provides a thorough and in depth analysis of how Cyprus reached the point of failure and what lessons this experience holds for future economic crises. The various perspectives collectively address unanswered questions, including whether the bail-in can be considered successful, why the recession was less severe than expected, and what conclusions can be drawn about stress-testing exercises across borders.Focusing on one of the (proportionately) largest crises in financial history, the case study will prove essential to policy-makers and politicians, especially in the euro area.

A Strategy for Resolving Europe's Problem Loans

A Strategy for Resolving Europe's Problem Loans
Author: Mr.Shekhar Aiyar
Publisher: International Monetary Fund
Total Pages: 79
Release: 2015-09-24
Genre: Business & Economics
ISBN: 1513511653

Europe’s banking system is weighed down by high levels of non-performing loans (NPLs), which are holding down credit growth and economic activity. This discussion note uses a new survey of European country authorities and banks to examine the structural obstacles that discourage banks from addressing their problem loans. A three pillared strategy is advocated to remedy the situation, comprising: (i) tightened supervisory policies, (ii) insolvency reforms, and (iii) the development of distressed debt markets.

Managing the Sovereign-Bank Nexus

Managing the Sovereign-Bank Nexus
Author: Mr.Giovanni Dell'Ariccia
Publisher: International Monetary Fund
Total Pages: 54
Release: 2018-09-07
Genre: Business & Economics
ISBN: 1484359623

This paper reviews empirical and theoretical work on the links between banks and their governments (the bank-sovereign nexus). How significant is this nexus? What do we know about it? To what extent is it a source of concern? What is the role of policy intervention? The paper concludes with a review of recent policy proposals.

The Single Resolution Mechanism

The Single Resolution Mechanism
Author: Robby Houben
Publisher:
Total Pages: 0
Release: 2017
Genre: Banking law
ISBN: 9789400007789

This book takes stock after a year of application of the SRM and examines the situation from various perspectives: the perspective of the SRB, the NRA, the supervised bank and judicial protection. Special attention is given to the division of power between the RB and the NRA and the impact on the supervised bank, the relationship and links between the SRM and the SSM and the query whether the right balance between national and supranational powers has been struck, also in view of the principle of subsidiarity.

Managing Systemic Banking Crises

Managing Systemic Banking Crises
Author: Ms.Marina Moretti
Publisher: International Monetary Fund
Total Pages: 88
Release: 2020-02-11
Genre: Business & Economics
ISBN: 1513512277

This paper updates the IMF’s work on general principles, strategies, and techniques from an operational perspective in preparing for and managing systemic banking crises in light of the experiences and challenges faced during and since the global financial crisis. It summarizes IMF advice concerning these areas from staff of the IMF Monetary and Capital Markets Department (MCM), drawing on Executive Board Papers, IMF staff publications, and country documents (including program documents and technical assistance reports). Unless stated otherwise, the guidance is generally applicable across the IMF membership.