The Resolution of Cross-Border Banking Crises in the EU. A Legal Study from the Perspective of Burden Sharing
Any policy aimed at resolution of a banking crisis determines which constituents – depositors, creditors, shareholders, the banking industry, and society as a whole – eventually bear the costs associated with a banking crisis, thus giving rise to legitimacy and accountability concerns. Rather than what the recent financial crisis has engendered – mostly ad hoc reactions that socialize losses but not profits – what is required, this incisive analysis shows, is an equitable and viable resolution framework, based on burden sharing, enshrined in law, and designed to deal with bank failures in a way that balances private and public interests.
The author explores the design, institutional framework, and practical functioning of such a legal regime under EU law. In the process she discusses such issues as the following:
- the systemic risk of bank failure;
- exit regimes for failing banks and banking groups;
- difficulties produced by the increasing cross-border activities and interconnectedness of the banking sector;
- resolution tools to minimize the losses of the official sector;
- the role of various authorities in resolving failing banks;
- the need for resolution authorities to have robust rules and a certain level of discretion;
- the potential sources of resolution financing;
- overcoming resistance to burden-sharing arrangements;
- the integration potential and political drawbacks of the emerging Banking Union;
- the deposit insurance responsibilities of Member States;
- European Central Bank monetary policy operations as a burden-sharing mechanism; and
- the geographic scope of resolution and burden-sharing regimes and implications for non-participating Member States and third countries.
|Resources||Table of Contents|
|Product Line||Kluwer Law International|
List of Abbreviations.
Chapter 1 Setting the Stage.
Chapter 2 Conceptualizing Burden Sharing.
Chapter 3 Designing a Legal Regime for Bank Resolution.
Chapter 4 Burden Sharing in Practice.
Chapter 5 The Institutional Framework for Burden Sharing.
Chapter 6 Conclusions and Outlook.
List of Court Rulings.
See what our clients are saying:
"The book constitutes a research of high quality. especially in light of the normative difficulties arising from the development of a new and credible resolution regime in Europe. The analysis is comprehensive and well-structured, covering almost all of the legal aspects related to the assessment of burden sharing in Europe."
Journal of International Banking Law and Regulation - Gianni Lo Schiavo, PhD Candidate King's College (London)