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

5 PUBLICATIONS

Speech

ECON evidence on MiFID

Finance Watch today gave evidence at a European Parliament hearing on the planned update to MiFID, the EU’s rules governing markets for financial instruments, and on high frequency trading.
Speech

Speech to EESC at hearing on civil society and financial regulation

Finance Watch Secretary General Thierry Philipponnat today gave evidence at a public hearing of the European Economic and Social Committee entitled “The role of civil society in financial regulation”.
Open letter

Open letter to EU leaders on supervised bank deleveraging

Finance Watch today asked EU leaders to take measures to protect the real economy in case new bank rules cut off the supply of credit. Press release 19 October 2011
Speech

ECON Committee evidence on CRD4

Finance Watch Secretary General, Thierry Philipponnat, yesterday gave evidence on the effects of CRD4 to the European Parliament’s ECON Committee for Economic and Monetary affairs. Press release 12 October 2011.
Position paper

Position paper on sovereign CDS

Finance Watch has published the first in a series of short position papers where it highlights situations where a private interest is disguised as a public interest argument. Presse release 11 July 2012.

Upcoming events

Check our events page