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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3 PUBLICATIONS

Report

“A missed opportunity to revive “boring” finance?” – Position paper on long term financing, securitisation and securities financing

Finance Watch position paper on the European Commission’s long term financing initiative, focussing on securitisation and securities financing: “A missed opportunity to revive “boring” finance?”
Speech

Evidence at EPP Group Hearing on ELTIFs

Finance Watch contribution to the hearing on European Long Term Investment Funds, European Parliament. By Frédéric Hache, Senior Policy Analyst, Finance Watch.
Position paper

Finance Watch’s General Assessement of CRD IV bill

In May 2013, we took the occasion of a hearing at the Bundestag on the application of the Capital Requirement Directive in Germany (Umsetzung der EU-Richtlinie über den Zugang zur Tätigkeit von...

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