In 2012, at the peak of the euro crisis, the leaders of the EU launched the banking union, involving the transfer of large parts of the banking regulatory and supervisory framework from the national domain to the euro area. This column introduces a new report which takes stock of this reform so far and proposes policy measures to improve its performance. It identifies three strategic goals for regulatory and supervisory action aimed at reviving the banking union: reduce overbanking among weaker players; favour consolidation and enhance efficiency among the stronger ones; strengthen balance sheets further, while encouraging area-wide diversification. The proposed measures cover, among other areas, the crisis management mechanism, with a revamp of the instruments and functionsRead More »
Articles by Angeloni
This report reviews Europe’s banking union and suggests possible regulatory changes to revive the project, focused on three strategic goals: reducing overbanking, especially among the weaker players; favouring consolidation and efficiency among the stronger ones; and strengthening balance sheets further, while encouraging cross-border diversification.
In 2012, at the peak of the euro crisis, the European Union launched the banking union, a project involving the transfer of large parts of the bank regulatory and supervisory framework from the national domain to the euro area. Its aim was to reinforce the euro architecture and to strengthen the area’s banking industry, both put to a severeRead More »
Banks are the key to providing financial oxygen to the economy, but the coronavirus pandemic is raising the risk that banks in the euro area will cease to function. This column argues that the return to normality we all crave requires, among other things, that banks be saved, and that this will not happen unless regulation is adapted and more public support is provided.
One after another, all the long-held tenets and taboos of Europe’s postwar rule-based liberal order seem to be falling away. National borders close. Personal liberties are curtailed. Governments rule by decree, while deserted parliaments hastily rubber stamp. Fiscal limits are overstepped; barely noticed, days ago, were the suspension of the EU stability pact and the approval of a jumbo budgetRead More »