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The Case for a European Banking Charter
Author: Mr. Martin Cihakhttps://orcid.org/0000-0002-3571-9707 and Mr. Jörg Decressin
Series:
IMF Working Papers
Volume/Issue:
Volume 2007: Issue 173
Language:
English
Publication Date:
01 Jul 2007
DOI:
https://doi.org/10.5089/9781451867374.001
ISBN:
9781451867374
ISSN:
1018-5941
Pages:
34
Keywords:
WP; insolvency regime; prudential regime; financial institution; EU country; EBC regime; member state; European Union; Financial System; Financial Stability; Banking Charter; LCFI host country activity; EBC proposal; Financial sector stability; Deposit insurance; Solvency; Competition; Europe
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Most financial institutions in the European Union (EU) are still based in one country, but a number of large financial institutions (LCFI) have systemic cross-border exposures. The paper explains how, despite much progress, nationally-segmented supervisory frameworks and national accountability for financial stability hinder optimization across borders of banks' operations and efficient and effective LCFI supervision. A full-fledged EU-level prudential regime that operates along-side national regimes--a European Banking Charter (EBC)--could harness market forces to establish a level playing field for financial sector competition, while plugging some significant gaps in Europe's financial stability framework without concentrating excessive powers.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund