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”).

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6 PUBLICATIONS

Speech

Public hearing on EU Banking Package at German Bundestag

On 28 October 2020, Finance Watch participated in a public hearing at the German Bundestag Finance Committee on the implementation of the EU Banking Package.
Consultation response

Consultation response on the review of Solvency II

Consultation response

Response to the FSB consultation on the evaluation of the effects of “too-big-to-fail” reforms

Speech

Hearing at the Bundestag on the finalisation of the Basel III framework

Covid-19 looks set to become the banking sector’s most powerful argument yet to demand a wholesale roll-back of the Basel III framework.
Open letter

Alliance Letters to EU institutions on the Reform of the European Supervisory Authorities (ESAs)  

Together with BEUC, Better Finance, AGE Platform Europe and Coface Families Europe, we sent two letters to the European institutions regarding the Reform of the European Supervisory Authorities.
Consultation response

Consultation response on implementing the final BASEL III reforms in the EU

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