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”).

Or go to the search page

4 PUBLICATIONS

Consultation response

Improving the EU Macroprudential Framework for the Banking Sector (Consultation response)

Consultation response

Consultation response on the review of prudential rules for insurance and reinsurance firms (Solvency II Directive)

Consultation response

Consultation response on the functioning of the EU securitisation framework

Consultation response

Consultation Response on the Supervisory Convergence and the Single Rule Book

Upcoming events

Check our events page