This document outlines the European Commission's plan to establish a banking union within the Eurozone. It proposes setting up a single supervisory mechanism for banks that involves direct oversight by the European Central Bank. This would help curb risks within the Eurozone and break the link between bank and sovereign debt. The document also stresses the need to complete other reforms to establish common rules on capital requirements, deposit guarantee schemes, and bank resolution across the EU to support the banking union while maintaining the integrity of the single market.
The document summarizes the agenda for the upcoming Economic and Financial Affairs Council meeting on July 10th in Brussels. The Council will discuss further improving economic governance in the euro area, including proposals for enhanced monitoring of euro area member states' budgetary plans and fiscal policies. They will also discuss negotiations with the European Parliament on proposals to strengthen bank capital requirements and establish a framework for resolving failing banks in an orderly manner.
Reallocation of risks through the central bank system in the ECUGian Marco MELANDRI
This document summarizes the objectives and functions of the European Central Bank and Eurosystem. It discusses their role in maintaining price stability and conducting monetary policy. It also describes some key monetary policy tools and risk management instruments used, including Target2, Longer-Term Refinancing Operations, and the Security Market Programme. The document provides background on these programs and some data from recent years.
The Eurogroup reached an agreement with Cyprus on a macroeconomic adjustment program to address Cyprus' exceptional challenges and restore a viable financial sector. Key elements include restructuring the banking sector by resolving Laiki Bank, folding its good assets into Bank of Cyprus which will be recapitalized through a conversion of uninsured deposits to equity, while insured deposits will be protected. The program is supported by the EU and IMF and will provide up to 10 billion euros in financial assistance.
Conference: European Banking Union: Democracy, Technocracy and the State of Integration - Global Governance Programme, Robert Schuman Centre for Advanced Studies, European University Institute
By: Sergio Fabbrini, LUISS School of Government
This proposal is part of the Digital Finance package, a package of measures to further enable and support the potential of digital finance in terms of innovation and competition while mitigating the risks.It is in line with the Commission priorities to make Europe fit for the digital age and to build a future-ready economy that works for the people.The digital finance package includes a new Strategy on digital finance for the EU financial sector with the aim to ensure that the EU embraces the digital revolution and drives it withinnovative European firms in the lead, making the benefits of digital finance available to European consumers and businesses.In addition to this proposal, the package also includes a proposal for a pilot regime on distributed ledger technology (DLT) market infrastructures, a proposal for digital operational resilience, and a proposal to clarify or amend certain related EU financial services rules.
The document discusses the European sovereign debt crisis and responses to it. It describes the phases of the global financial crisis, including the sovereign debt crisis phase. It explains how the interaction of sovereign and bank balance sheets weakened government finances and pressured sovereign debt markets. Responses included financial support packages for Greece and other vulnerable states, the establishment of firewalls against debt market contagion, reinforcement of banking sectors, and reforms to strengthen economic governance. The crisis affected Turkey through declining demand in European markets.
The document discusses financing of energy projects in Bosnia and Herzegovina. It notes that there is a need for new energy facilities and increased interest in investing in energy projects. However, implementing internationally recognized collateral faces obstacles due to a lack of practice, overregulation, and lack of regulations in Bosnia and Herzegovina. Direct agreements have been used as collateral for the Stanari Project, the first and only energy project in Bosnia to use this structure. The document recommends deal-oriented solutions and improving the local legal framework to help facilitate energy project financing.
Conclusiones del Consejo Europeo(29.06.12)ManfredNolte
The European Council meeting concluded with agreements on several measures to promote growth and jobs in Europe:
1) Adoption of a "Compact for Growth and Jobs" to coordinate national, EU, and euro area actions to restart growth, investment, employment, and competitiveness.
2) General endorsement of country-specific policy recommendations to guide member state budgets and reforms.
3) Agreement on establishing a unified European patent court to help businesses.
The Council also discussed ongoing work to establish a genuine economic and monetary union for Europe.
The document summarizes the agenda for the upcoming Economic and Financial Affairs Council meeting on July 10th in Brussels. The Council will discuss further improving economic governance in the euro area, including proposals for enhanced monitoring of euro area member states' budgetary plans and fiscal policies. They will also discuss negotiations with the European Parliament on proposals to strengthen bank capital requirements and establish a framework for resolving failing banks in an orderly manner.
Reallocation of risks through the central bank system in the ECUGian Marco MELANDRI
This document summarizes the objectives and functions of the European Central Bank and Eurosystem. It discusses their role in maintaining price stability and conducting monetary policy. It also describes some key monetary policy tools and risk management instruments used, including Target2, Longer-Term Refinancing Operations, and the Security Market Programme. The document provides background on these programs and some data from recent years.
The Eurogroup reached an agreement with Cyprus on a macroeconomic adjustment program to address Cyprus' exceptional challenges and restore a viable financial sector. Key elements include restructuring the banking sector by resolving Laiki Bank, folding its good assets into Bank of Cyprus which will be recapitalized through a conversion of uninsured deposits to equity, while insured deposits will be protected. The program is supported by the EU and IMF and will provide up to 10 billion euros in financial assistance.
Conference: European Banking Union: Democracy, Technocracy and the State of Integration - Global Governance Programme, Robert Schuman Centre for Advanced Studies, European University Institute
By: Sergio Fabbrini, LUISS School of Government
This proposal is part of the Digital Finance package, a package of measures to further enable and support the potential of digital finance in terms of innovation and competition while mitigating the risks.It is in line with the Commission priorities to make Europe fit for the digital age and to build a future-ready economy that works for the people.The digital finance package includes a new Strategy on digital finance for the EU financial sector with the aim to ensure that the EU embraces the digital revolution and drives it withinnovative European firms in the lead, making the benefits of digital finance available to European consumers and businesses.In addition to this proposal, the package also includes a proposal for a pilot regime on distributed ledger technology (DLT) market infrastructures, a proposal for digital operational resilience, and a proposal to clarify or amend certain related EU financial services rules.
The document discusses the European sovereign debt crisis and responses to it. It describes the phases of the global financial crisis, including the sovereign debt crisis phase. It explains how the interaction of sovereign and bank balance sheets weakened government finances and pressured sovereign debt markets. Responses included financial support packages for Greece and other vulnerable states, the establishment of firewalls against debt market contagion, reinforcement of banking sectors, and reforms to strengthen economic governance. The crisis affected Turkey through declining demand in European markets.
The document discusses financing of energy projects in Bosnia and Herzegovina. It notes that there is a need for new energy facilities and increased interest in investing in energy projects. However, implementing internationally recognized collateral faces obstacles due to a lack of practice, overregulation, and lack of regulations in Bosnia and Herzegovina. Direct agreements have been used as collateral for the Stanari Project, the first and only energy project in Bosnia to use this structure. The document recommends deal-oriented solutions and improving the local legal framework to help facilitate energy project financing.
Conclusiones del Consejo Europeo(29.06.12)ManfredNolte
The European Council meeting concluded with agreements on several measures to promote growth and jobs in Europe:
1) Adoption of a "Compact for Growth and Jobs" to coordinate national, EU, and euro area actions to restart growth, investment, employment, and competitiveness.
2) General endorsement of country-specific policy recommendations to guide member state budgets and reforms.
3) Agreement on establishing a unified European patent court to help businesses.
The Council also discussed ongoing work to establish a genuine economic and monetary union for Europe.
The European Central Bank monitors risks in the financial system, promotes cooperation between authorities, and employs lines of defense to prevent financial crises. It identifies vulnerabilities through monitoring banks, industries, stock and bond markets. Regulations and supervision aim to ensure effective risk management. Cooperation between ministries of finance and authorities is essential to maintain stability during normal times and crises.
The first step to succeed or the last chance to survive march 2013Asta Pravilonyte
An invitation to policy makers, financial institutions, entrepreneurs and innovators, academics and other interest groups to share their observations and experience those may reveal factors required to attract investors and remove barriers for sustainable development.
Dedicated to support sustainable development trends those strengthen resilience during financial shocks and contractions of economy.
The Eurosystem consists of the European Central Bank (ECB) and the national central banks of euro area countries. The ECB was established to manage the euro and set monetary policy for the euro area. It aims to maintain price stability through its main decision-making bodies: the Governing Council and Executive Board. The ECB is independent from political influence and its primary objective is to maintain price stability in the euro area.
Propuesta decisión Consejo europeo sobre EspañaManfredNolte
This document is a proposal for a Council Decision addressed to Spain on specific measures to reinforce financial stability. It outlines the context of Spain's request for financial assistance to recapitalize its banking sector due to problems from a real estate bubble bursting. It proposes that Spain develop a strategy to restructure its banking system, including identifying capital needs through asset quality reviews and stress tests, recapitalizing or resolving weak banks, and segregating impaired assets to an asset management company. It also proposes strengthening regulatory and supervisory frameworks for Spanish banks. The proposal aims to overhaul weak segments of the banking sector and reinforce stability in Spain.
Il documento ufficiale dell'Ecofin è un importante passo verso l'unione bancaria.
Tutto quello che c'è da sapere sull'unione bancaria europea lo trovate sul nostro dossier. http://www.lavoce.info/unione-bancaria-europea/
The European Monetary Union (EMU) originated from the European Monetary System (EMS) established in 1979 to implement fixed exchange rates. The EMS has since developed into a more extensive economic and monetary union with coordinated policies among member countries. The EU and EMU were formed to create a unified European market, enhance political stability and economic growth, and eliminate risks from separate currencies. Currently 19 EU member countries use the euro currency as part of the EMU.
El PIB (Producto Interior Bruto) es el valor monetario de los bienes y servicios finales producidos en un país durante un período determinado. Sin embargo, el PIB tiene limitaciones porque solo incluye actividades mercantiles remuneradas y excluye el trabajo doméstico no remunerado y la economía sumergida. Esto significa que el PIB subestima ampliamente la actividad económica real, especialmente en países menos desarrollados donde más tiempo se dedica a actividades no remuneradas. Además, la tendencia a ignorar el trabajo
España está atravesando una década perdida, con su PIB en 2023 aún por debajo del nivel de 2007. Mientras que otros países desarrollados se recuperaron entre 2010 y 2014, España se encuentra entre los rezagados junto a Italia, Portugal e Irlanda y no se espera que recupere los niveles previos a la crisis hasta 2017. Además, aunque el PIB se recupere para 2018, es probable que no se recuperen los 2,5 millones de puestos de trabajo perdidos hasta 2022 o 2023. Las políticas de auster
El documento discute la identificación de Alemania como agente potencial de desequilibrio económico en la Eurozona. Aunque Alemania rebasa cuatro de once indicadores de desequilibrio, solo su superávit superior al 6% del PIB durante tres años ha atraído atención. La Comisión Europea cuestiona este superávit aunque reconoce que no se produce frente a la Eurozona o la UE. Se sugiere que Alemania podría estimular más la demanda interna para beneficiar a otros países, pero esto solo funcionaría si sus productos son competitivos. En
El documento analiza la postura de Mario Draghi sobre la crisis de la eurozona. Según Draghi, los problemas no surgen del euro como moneda sino de la falta de gobernanza e instituciones comunitarias como un tesoro o unión bancaria. Draghi propone una nueva arquitectura gradual que beneficie a todos los países bajo el principio de que las políticas nacionales no deben perjudicar a otros. También advierte que el BCE usará medidas excepcionales si es necesario para corregir distorsiones en los mercados que impidan la transmis
El documento discute la pobreza y la desigualdad global. Explica que aunque estén relacionados, la pobreza y la desigualdad son conceptos distintos que se miden de diferentes maneras. Resalta que hasta 2008, la globalización ayudó a reducir la pobreza global a tasas sin precedentes, pero también aumentó la desigualdad mundial. Sin embargo, en los últimos años la crisis económica ha revertido parte de estos avances y ha vuelto a aumentar tanto la pobreza como la desigualdad.
The Federal Reserve Bank of New York announced that the Federal Open Market Committee directed it to purchase $40 billion in additional agency mortgage-backed securities per month through the end of the year. It also directed the bank to continue extending the average maturity of its Treasury security holdings and to reinvest principal payments from its agency debt and MBS holdings into more agency MBS. These actions are intended to put downward pressure on longer-term interest rates, support mortgage markets, and make broader financial conditions more accommodative.
La mayoría de los países han dado pasos importantes para reducir los déficits fiscales mediante una combinación de políticas de ingreso y gasto, aunque los esfuerzos para controlar la deuda están demorando más en algunas economías avanzadas. A pesar de los avances, los riesgos fiscales permanecen elevados. Las autoridades deben encontrar un equilibrio entre la consolidación fiscal y el apoyo a la recuperación económica frágil, desacelerando el ajuste solo si el crecimiento es decepcionante.
La Unión Europea ha acordado una nueva directiva sobre la resolución bancaria que establece que en caso de quiebra, los acreedores de los bancos como los tenedores de bonos y depósitos grandes empresas serán los primeros en asumir las pérdidas, minimizando así el uso de fondos públicos para rescates. La directiva crea también fondos de resolución bancaria a nivel nacional que se utilizarán después de que los acreedores asuman pérdidas. Adicionalmente, se establece un fondo de hasta 60.
España podría estar experimentando deflación, según señala el Instituto Nacional de Estadística, cuyos datos muestran que los precios cayeron un -0,1% interanual en octubre. Sin embargo, el autor argumenta que España ha estado experimentando una deflación "encubierta" desde 2008 debido a la caída de la demanda interna, aunque factores como el aumento de los impuestos y las rigideces del mercado laboral han distorsionado las estadísticas de inflación. Además, señala que la recuper
This document provides a roadmap towards establishing a genuine Economic and Monetary Union (EMU) in the European Union. It proposes a three stage process: 1) Ensuring fiscal sustainability and breaking the link between banks and sovereigns, 2) Completing an integrated financial framework and promoting structural reforms, 3) Improving EMU resilience through a central shock absorption function. Key actions include completing a single supervisory mechanism for banks, establishing a single resolution mechanism for failing banks, and gradually developing a fiscal capacity and integrated budgetary framework to help cushion economic shocks. The goal is to make the euro area more resilient to internal and external challenges.
This document provides a roadmap towards establishing a genuine Economic and Monetary Union (EMU) in the euro area. It proposes a three stage process:
1) Ensuring fiscal sustainability and breaking the bank-sovereign link by 2013.
2) Completing an integrated financial framework and promoting structural reforms by 2014 through a common resolution authority and contractual reform agreements.
3) Improving EMU resilience after 2014 by establishing a fiscal capacity to absorb economic shocks, coupled with incentives for sound fiscal policies and deeper integration of budgets and policies.
The document argues this process is urgently needed to strengthen EMU mechanisms and ensure stability in response to challenges from within and outside the euro area.
The European Commission has proposed new rules to reform the structure of the EU banking sector by banning proprietary trading and allowing supervisors to require the separation of other high-risk trading activities from deposit-taking businesses in large banks. The proposals aim to reduce risks to financial stability from banks that are too big or complex to fail while ensuring continued financing for the economy. Accompanying measures also increase transparency of securities financing transactions to prevent risk shifting to the shadow banking sector.
The European heads of state agreed to take further steps to strengthen economic governance and address the sovereign debt crisis, including:
1) Establishing stricter fiscal rules for eurozone members with automatic sanctions for non-compliance
2) Accelerating the timeline for the European Stability Mechanism to enter into force to provide additional financial resources
3) Committing to leveraging existing financial backstops like the EFSF and providing up to €200B in additional resources to the IMF
Comunicado del consejo de europa cumbre del 9 de dic 2011neiracar
The European heads of state agreed to:
1) Create a stronger fiscal union with stricter budget rules including balanced budgets and debt reduction requirements enshrined in national law.
2) Accelerate the timeline for the European Stability Mechanism to provide more funding to July 2012 and consider increasing resources to €500 billion.
3) Leverage the European Financial Stability Facility more aggressively and have the ECB act as its agent in financial markets.
This document proposes reforms to improve governance and stability in the Eurozone. It recommends: (1) keeping fiscal responsibilities and control together to avoid moral hazard, either by transferring control to the EU or an intergovernmental agreement; (2) using the European Stability Mechanism as a vehicle for crisis prevention and monitoring fiscal rules; (3) expanding the ESM's role to include monitoring debt sustainability and coordinating restructuring when needed.
The financial crisis of 2007-2009 led to a renewed increase in government deficits and debts in many EU countries, causing a full-fledged fiscal crisis in Greece and severe fiscal pressures in other euro-area countries. This has prompted a series of proposals for improving the fiscal framework of the European Monetary Union, the Excessive Deficit Procedure and the Stability and Growth Pact. The first part of this paper reviews the main properties and developments of that framework until 2007. On that basis, it discusses the recent proposals for reform, which range from marginal improvements of the existing framework to the introduction of an explicit framework for managing fiscal crises in the member states, and the expansion of the scope of policy coordination to address macro economic imbalances and the competitiveness of the member states. We find the proposal of a mechanism for dealing with government default most useful. Attempts to suppress current account imbalances and to target national competitiveness positions would most likely result in serious economic losses and do damage to the internal market of the EU. This would increase the wedge between members and non-members of the euro area.
Authored by: Jurgen von Hagen
Published in 2010
The European Central Bank monitors risks in the financial system, promotes cooperation between authorities, and employs lines of defense to prevent financial crises. It identifies vulnerabilities through monitoring banks, industries, stock and bond markets. Regulations and supervision aim to ensure effective risk management. Cooperation between ministries of finance and authorities is essential to maintain stability during normal times and crises.
The first step to succeed or the last chance to survive march 2013Asta Pravilonyte
An invitation to policy makers, financial institutions, entrepreneurs and innovators, academics and other interest groups to share their observations and experience those may reveal factors required to attract investors and remove barriers for sustainable development.
Dedicated to support sustainable development trends those strengthen resilience during financial shocks and contractions of economy.
The Eurosystem consists of the European Central Bank (ECB) and the national central banks of euro area countries. The ECB was established to manage the euro and set monetary policy for the euro area. It aims to maintain price stability through its main decision-making bodies: the Governing Council and Executive Board. The ECB is independent from political influence and its primary objective is to maintain price stability in the euro area.
Propuesta decisión Consejo europeo sobre EspañaManfredNolte
This document is a proposal for a Council Decision addressed to Spain on specific measures to reinforce financial stability. It outlines the context of Spain's request for financial assistance to recapitalize its banking sector due to problems from a real estate bubble bursting. It proposes that Spain develop a strategy to restructure its banking system, including identifying capital needs through asset quality reviews and stress tests, recapitalizing or resolving weak banks, and segregating impaired assets to an asset management company. It also proposes strengthening regulatory and supervisory frameworks for Spanish banks. The proposal aims to overhaul weak segments of the banking sector and reinforce stability in Spain.
Il documento ufficiale dell'Ecofin è un importante passo verso l'unione bancaria.
Tutto quello che c'è da sapere sull'unione bancaria europea lo trovate sul nostro dossier. http://www.lavoce.info/unione-bancaria-europea/
The European Monetary Union (EMU) originated from the European Monetary System (EMS) established in 1979 to implement fixed exchange rates. The EMS has since developed into a more extensive economic and monetary union with coordinated policies among member countries. The EU and EMU were formed to create a unified European market, enhance political stability and economic growth, and eliminate risks from separate currencies. Currently 19 EU member countries use the euro currency as part of the EMU.
El PIB (Producto Interior Bruto) es el valor monetario de los bienes y servicios finales producidos en un país durante un período determinado. Sin embargo, el PIB tiene limitaciones porque solo incluye actividades mercantiles remuneradas y excluye el trabajo doméstico no remunerado y la economía sumergida. Esto significa que el PIB subestima ampliamente la actividad económica real, especialmente en países menos desarrollados donde más tiempo se dedica a actividades no remuneradas. Además, la tendencia a ignorar el trabajo
España está atravesando una década perdida, con su PIB en 2023 aún por debajo del nivel de 2007. Mientras que otros países desarrollados se recuperaron entre 2010 y 2014, España se encuentra entre los rezagados junto a Italia, Portugal e Irlanda y no se espera que recupere los niveles previos a la crisis hasta 2017. Además, aunque el PIB se recupere para 2018, es probable que no se recuperen los 2,5 millones de puestos de trabajo perdidos hasta 2022 o 2023. Las políticas de auster
El documento discute la identificación de Alemania como agente potencial de desequilibrio económico en la Eurozona. Aunque Alemania rebasa cuatro de once indicadores de desequilibrio, solo su superávit superior al 6% del PIB durante tres años ha atraído atención. La Comisión Europea cuestiona este superávit aunque reconoce que no se produce frente a la Eurozona o la UE. Se sugiere que Alemania podría estimular más la demanda interna para beneficiar a otros países, pero esto solo funcionaría si sus productos son competitivos. En
El documento analiza la postura de Mario Draghi sobre la crisis de la eurozona. Según Draghi, los problemas no surgen del euro como moneda sino de la falta de gobernanza e instituciones comunitarias como un tesoro o unión bancaria. Draghi propone una nueva arquitectura gradual que beneficie a todos los países bajo el principio de que las políticas nacionales no deben perjudicar a otros. También advierte que el BCE usará medidas excepcionales si es necesario para corregir distorsiones en los mercados que impidan la transmis
El documento discute la pobreza y la desigualdad global. Explica que aunque estén relacionados, la pobreza y la desigualdad son conceptos distintos que se miden de diferentes maneras. Resalta que hasta 2008, la globalización ayudó a reducir la pobreza global a tasas sin precedentes, pero también aumentó la desigualdad mundial. Sin embargo, en los últimos años la crisis económica ha revertido parte de estos avances y ha vuelto a aumentar tanto la pobreza como la desigualdad.
The Federal Reserve Bank of New York announced that the Federal Open Market Committee directed it to purchase $40 billion in additional agency mortgage-backed securities per month through the end of the year. It also directed the bank to continue extending the average maturity of its Treasury security holdings and to reinvest principal payments from its agency debt and MBS holdings into more agency MBS. These actions are intended to put downward pressure on longer-term interest rates, support mortgage markets, and make broader financial conditions more accommodative.
La mayoría de los países han dado pasos importantes para reducir los déficits fiscales mediante una combinación de políticas de ingreso y gasto, aunque los esfuerzos para controlar la deuda están demorando más en algunas economías avanzadas. A pesar de los avances, los riesgos fiscales permanecen elevados. Las autoridades deben encontrar un equilibrio entre la consolidación fiscal y el apoyo a la recuperación económica frágil, desacelerando el ajuste solo si el crecimiento es decepcionante.
La Unión Europea ha acordado una nueva directiva sobre la resolución bancaria que establece que en caso de quiebra, los acreedores de los bancos como los tenedores de bonos y depósitos grandes empresas serán los primeros en asumir las pérdidas, minimizando así el uso de fondos públicos para rescates. La directiva crea también fondos de resolución bancaria a nivel nacional que se utilizarán después de que los acreedores asuman pérdidas. Adicionalmente, se establece un fondo de hasta 60.
España podría estar experimentando deflación, según señala el Instituto Nacional de Estadística, cuyos datos muestran que los precios cayeron un -0,1% interanual en octubre. Sin embargo, el autor argumenta que España ha estado experimentando una deflación "encubierta" desde 2008 debido a la caída de la demanda interna, aunque factores como el aumento de los impuestos y las rigideces del mercado laboral han distorsionado las estadísticas de inflación. Además, señala que la recuper
This document provides a roadmap towards establishing a genuine Economic and Monetary Union (EMU) in the European Union. It proposes a three stage process: 1) Ensuring fiscal sustainability and breaking the link between banks and sovereigns, 2) Completing an integrated financial framework and promoting structural reforms, 3) Improving EMU resilience through a central shock absorption function. Key actions include completing a single supervisory mechanism for banks, establishing a single resolution mechanism for failing banks, and gradually developing a fiscal capacity and integrated budgetary framework to help cushion economic shocks. The goal is to make the euro area more resilient to internal and external challenges.
This document provides a roadmap towards establishing a genuine Economic and Monetary Union (EMU) in the euro area. It proposes a three stage process:
1) Ensuring fiscal sustainability and breaking the bank-sovereign link by 2013.
2) Completing an integrated financial framework and promoting structural reforms by 2014 through a common resolution authority and contractual reform agreements.
3) Improving EMU resilience after 2014 by establishing a fiscal capacity to absorb economic shocks, coupled with incentives for sound fiscal policies and deeper integration of budgets and policies.
The document argues this process is urgently needed to strengthen EMU mechanisms and ensure stability in response to challenges from within and outside the euro area.
The European Commission has proposed new rules to reform the structure of the EU banking sector by banning proprietary trading and allowing supervisors to require the separation of other high-risk trading activities from deposit-taking businesses in large banks. The proposals aim to reduce risks to financial stability from banks that are too big or complex to fail while ensuring continued financing for the economy. Accompanying measures also increase transparency of securities financing transactions to prevent risk shifting to the shadow banking sector.
The European heads of state agreed to take further steps to strengthen economic governance and address the sovereign debt crisis, including:
1) Establishing stricter fiscal rules for eurozone members with automatic sanctions for non-compliance
2) Accelerating the timeline for the European Stability Mechanism to enter into force to provide additional financial resources
3) Committing to leveraging existing financial backstops like the EFSF and providing up to €200B in additional resources to the IMF
Comunicado del consejo de europa cumbre del 9 de dic 2011neiracar
The European heads of state agreed to:
1) Create a stronger fiscal union with stricter budget rules including balanced budgets and debt reduction requirements enshrined in national law.
2) Accelerate the timeline for the European Stability Mechanism to provide more funding to July 2012 and consider increasing resources to €500 billion.
3) Leverage the European Financial Stability Facility more aggressively and have the ECB act as its agent in financial markets.
This document proposes reforms to improve governance and stability in the Eurozone. It recommends: (1) keeping fiscal responsibilities and control together to avoid moral hazard, either by transferring control to the EU or an intergovernmental agreement; (2) using the European Stability Mechanism as a vehicle for crisis prevention and monitoring fiscal rules; (3) expanding the ESM's role to include monitoring debt sustainability and coordinating restructuring when needed.
The financial crisis of 2007-2009 led to a renewed increase in government deficits and debts in many EU countries, causing a full-fledged fiscal crisis in Greece and severe fiscal pressures in other euro-area countries. This has prompted a series of proposals for improving the fiscal framework of the European Monetary Union, the Excessive Deficit Procedure and the Stability and Growth Pact. The first part of this paper reviews the main properties and developments of that framework until 2007. On that basis, it discusses the recent proposals for reform, which range from marginal improvements of the existing framework to the introduction of an explicit framework for managing fiscal crises in the member states, and the expansion of the scope of policy coordination to address macro economic imbalances and the competitiveness of the member states. We find the proposal of a mechanism for dealing with government default most useful. Attempts to suppress current account imbalances and to target national competitiveness positions would most likely result in serious economic losses and do damage to the internal market of the EU. This would increase the wedge between members and non-members of the euro area.
Authored by: Jurgen von Hagen
Published in 2010
Declaracion de la Cumbre del Euro(29.06.12)ManfredNolte
The document summarizes decisions made at the Euro Area Summit on 29 June 2012. The key points are:
1) They agreed it is important to break the link between troubled banks and sovereigns, and asked the European Commission to propose a single supervisory mechanism for eurozone banks involving the ECB by the end of 2012.
2) When this mechanism is in place, the ESM could directly recapitalize banks, following certain conditions being met.
3) They urged the rapid conclusion of Spain's banking sector recapitalization agreement and reaffirmed financial assistance would come from the EFSF and later be transferred to the ESM.
4) They committed to ensuring financial stability in the
Euc Payment System End Users Committee (Euc)Friso de Jong
This paper examines the outstanding issues surrounding the SEPA project, in particular SEPA direct debit (SDD). It looks at these issues from the point of view of the payment systems users’ community, in particular the members of the End-users Committee (EUC).
The document discusses the agenda for the upcoming Economic and Financial Affairs Council meeting. Key items include:
1) The Commission will present its proposal for establishing a framework for resolving failing banks while minimizing taxpayer losses.
2) The Council will approve country-specific recommendations on member states' economic and fiscal policies as part of the European Semester process.
3) The Council is expected to close the excessive deficit procedures for Germany and Bulgaria, as their deficits have been reduced below 3% of GDP.
Shaping a new regulatory and supervisory framework for the finance industryAristoteles Lakkas
The document outlines UNI Europa Finance's approach to shaping a new regulatory and supervisory framework for the finance industry in Europe in response to the 2008 financial crisis. Key points include calling for a comprehensive regulatory framework at the EU and global levels, focusing lobbying efforts on six priority EU legislative initiatives regarding financial supervision and responsible sales practices, and coordinating with affiliated unions and organizations to jointly influence financial reform.
The document summarizes the slow but ongoing progress towards banking and fiscal union in the EU. Key points:
- EU finance ministers agreed to give the ECB oversight of large banks, but delayed fiscal union decisions until June 2013.
- The ECB will directly supervise over 200 large banks from 2014, leaving oversight of smaller banks to nations.
- A banking union aims to boost stability but was scaled back and implementation was pushed to 2014, leaving gaps.
- Fiscal and banking reforms need to go together with budget coordination to support financial stability long-term.
This document calls for strengthening the European Monetary Union in three key ways: 1) Supporting national structural reforms through consistent use of EU instruments and new mechanisms. 2) Rapidly supplementing the EMU with a powerful European banking union. 3) Renouncing further tax increases or projects like the Financial Transaction Tax that could harm the economy. It argues these steps are needed to stabilize the eurozone long-term, ensure financing for the real economy, and avoid counterproductive tax measures.
This document discusses the need for greater economic integration and coordination within the European Union to address issues revealed by the sovereign debt crisis. It argues that the EU needs more powers to enforce economic policy coordination and promote convergence between member states. It proposes giving the EU more authority to overrule national economic decisions that violate agreed targets. It also advocates developing an orderly default mechanism for member states and introducing European Debt Certificates. However, it acknowledges that increasing EU powers could exacerbate the democratic deficit, so it is important to also increase the legitimacy and accountability of EU decision-making.
ASF consolidated securitisation proposals European commission September 2015exSell Group
The Commission Securitisation initiative adopted on 30 September 2015 is a package of two legislative proposals:
A Securitisation Regulationpdf(2 MB) Choose translations of the previous link that will apply to all securitisations and include due diligence, risk retention and transparency rules together with the criteria for Simple, Transparent and Standardised ("STS") Securitisations;
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h
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Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
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Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
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Hoja de ruta para la Union bancaria
1. EUROPEAN COMMISSION
Brussels, 12.9.2012
COM(2012) 510 final
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN
PARLIAMENT AND THE COUNCIL
A Roadmap towards a Banking Union
EN EN
2. COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN
PARLIAMENT AND THE COUNCIL
A Roadmap towards a Banking Union
2
3. 1. INTRODUCTION
Over the past four years, the EU has responded decisively to the economic and financial
crisis. Significant improvements have been made to the Economic and Monetary Union
(EMU), and a substantial financial reform agenda is being implemented, fulfilling
commitments made in the G20 in response to the financial crisis, and to make financial
institutions and markets more stable, more competitive and more resilient1.
Completing this reform of the EU regulatory framework is essential but will not be sufficient
to successfully address significant threats to financial stability across the Economic and
Monetary Union. Further steps are needed to tackle the specific risks within the Euro Area,
where pooled monetary responsibilities have spurred close economic and financial integration
and increased the possibility of cross-border spill-over effects in the event of bank crises, and
to break the link between sovereign debt and bank debt and the vicious circle which has led to
over €4,5 trillion of taxpayers money being used to rescue banks in the EU. Coordination
between supervisors is vital but the crisis has shown that mere coordination is not enough, in
particular in the context of a single currency and that there is a need for common decision-
making. It is also important to curtail the increasing risk of fragmentation of EU banking
markets, which significantly undermines the single market for financial services and impairs
the effective transmission of monetary policy to the real economy throughout the Euro Area.
The Commission has therefore called2 for a banking union to place the banking sector on a
more sound footing and restore confidence in the Euro as part of a longer term vision for
economic and fiscal integration. Shifting the supervision of banks to the European level is a
key part of this process, which must subsequently be combined with other steps such as a
common system for deposit protection, and integrated bank crisis management. The report by
the Presidents of the European Council, the Commission, the Eurogroup and the European
Central Bank (ECB) of 26 June 20123 endorsed this vision. For its part, the European
Parliament has recommended steps in the same direction, for example in its report from July
2010 on cross-border crisis management in the banking sector4. This was also confirmed by
the Euro Area Summit of 29 June 20125.
Ensuring that bank supervision and resolution across the Euro Area meets high standards will
reassure citizens and markets that a common, high level of prudential regulation is
1
http://ec.europa.eu/internal_market/finances/policy/map_reform_en.htm
2
http://ec.europa.eu/commission_2010-2014/president/news/archives/2012/06/20120626_speeches_2_en.htm
3
http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/131201.pdf
4
European Parliament resolution of 7 July 2010 with recommendations to the Commission on Cross-Border
Crisis Management in the Banking Sector (2010/2006(INI))
5
"The Commission will present Proposals on the basis of Article 127(6) for a single supervisory mechanism
shortly. We ask the Council to consider these Proposals as a matter of urgency by the end of 2012.
When an effective single supervisory mechanism is established, involving the ECB, for banks in the
euro area the ESM could, following a regular decision, have the possibility to recapitalize banks
directly. This would rely on appropriate conditionality, including compliance with state aid rules, which
should be institution specific, sector-specific or economy-wide and would be formalised in a
Memorandum of Understanding".
http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/131359.pdf
3
4. consistently applied to all banks. If banks get into difficulties in the future, the public should
have the confidence that ailing banks will be restructured or closed while minimizing costs for
the taxpayer. This future system will help build the necessary trust between Member States,
which is a pre-condition for the introduction of any common financial arrangements to protect
depositors and support orderly resolution of failing banks.
This communication accompanies two legislative proposals, respectively for the setting up of
a single supervisory mechanism by conferring specific tasks on the ECB concerning policies
relating to the prudential supervision of credit institutions and for adaptations to the
Regulation setting up the European Banking Authority (EBA)6. These legislative proposals
mark a first important step which will make a qualitative improvement in financial stability
and confidence in the Euro Area in particular. This communication sets the single supervisory
mechanism in context and indicates further work towards a banking union beyond these first
proposals.
2. THE BANKING UNION AND THE SINGLE MARKET
The single market for financial services is based on common rules which ensure that banks
and other financial institutions which under the Treaty enjoy rights of free establishment and
free provision of services are subject to equivalent rules and proper supervision across the EU.
The creation of the banking union must not compromise the unity and integrity of the single
market which remains one of the greatest achievements of European integration. Indeed, the
banking union rests on the completion of the programme of substantive regulatory reform
underway for the single market (the "single rulebook").
The single market and the banking union are thus mutually reinforcing processes. Work to
strengthen the single market must continue across all existing areas covered by Commission
proposals.
Moreover, in three areas of specific relevance to the banking union, this work should be
accelerated and agreement between the co-legislators on the relevant proposals reached before
the end of 2012:
– Stronger prudential requirements for banks have been proposed. With its proposals
on bank capital requirements ("CRD4")7, the Commission launched the process of
implementing the new global standards on bank capital and liquidity. The creation of
the single supervisory mechanism should not require substantive changes to the
proposed regulation and directive, although in a limited number of areas, some fine-
tuning may be required to reflect the new situation. During the final stages of the
CRD4 negotiations, the Commission will pay particular attention to ensure that the
texts agreed are technically compatible with the proposed Regulation setting up the
single supervisory mechanism, and will work with the European Parliament and the
Council in this perspective. This will include in particular ensuring that all provisions
6
Regulation (EU) No 1093/2010
7
http://ec.europa.eu/internal_market/bank/regcapital/new_proposals_en.htm
4
5. of the proposed CRD4 Directive are operational for application both at national level
and by the ECB.
– The coverage of national Deposit Guarantee Schemes (DGS) has already been raised
to a harmonised level of €100,000 per depositor, per institution, effective as of 31
December 2010. In July 2010, the Commission proposed8 going further, with the
harmonisation and simplification of protected deposits, faster pay-outs and improved
financing, notably through the ex-ante funding of deposit guarantee schemes paid for
by contributions from banks and a mandatory borrowing facility between national
schemes within certain fixed limits.
– The Commission's proposal on recovery and resolution tools for banks in crisis,
adopted on 6 June 20129, is the last in a series of proposed measures to strengthen
Europe's banking sector and to avoid the spill-over effects of any future financial
crisis with negative effects on depositors and taxpayers. To ensure that financial
stability is upheld while bank shareholders and creditors bear their full share of bank
losses and recapitalisation costs, the Commission has proposed a common
framework of rules and powers. This will help Member States prevent bank crises
from emerging in the first place and, if such bank crises still emerge, to manage them
in a more orderly and effective way. Member States would be required to establish
an ex-ante resolution fund paid for by contributions from banks, and provision is
made for a mandatory borrowing facility between national schemes, again subject to
clear limits.
These rules will therefore constitute a common foundation across the single market on which
the banking union proposals can build. This single rulebook is needed for the stability and
integrity of the EU's internal market in financial services. It provides a common foundation
which allows a move to the banking union without any risk of fragmenting the single market.
Swift delivery of the outstanding reforms on capital requirements, deposit guarantee schemes,
and bank resolution by the co-legislators by the end of the year, is therefore paramount.
These rules also have to be applied in the same way across the whole Union, through coherent
and convergent supervision of credit institutions by national supervisors and the ECB. The
European Banking Authority (EBA) has a crucial role in delivering this objective, in
particular, by the set of instruments and powers provided by its founding regulation
(addressing breaches of Union law, mediation, binding technical standards, guidelines, and
recommendations). It is therefore critical that the EBA plays fully its role to build a common
legal framework and supervisory culture across the whole Union.
Moreover, in order to avoid any divergence between the Euro Area and the rest of the EU, the
single rulebook should be underpinned by uniform supervisory practices. Different
supervisory handbooks and supervisory approaches between the Member States participating
in the single supervisory mechanism and the other Member States pose a risk of
fragmentation of the single market, as banks could exploit the differences to pursue regulatory
arbitrage. The EBA should develop a single supervisory handbook to complement the single
rulebook.
8
http://ec.europa.eu/internal_market/bank/docs/guarantee/200914_en.pdf
9
http://ec.europa.eu/internal_market/bank/crisis_management/index_en.htm
5
6. Any measures adopted by the ECB – for example to spell out further details on how
prudential supervision is carried out in the context of the specific supervisory structure created
by the single supervisory mechanism – must be in line with the single rulebook including the
technical standards set out by delegated acts adopted by the European Commission. Finally, it
should be noted that today's proposal maintains the current balance between home and host
Member States, including as regards participation in supervisory colleges.
The effective impact and implications of the single supervisory mechanism on the operational
functioning of the EBA will be further examined in the forthcoming review on the functioning
of the European Supervisory Authorities to be presented by the Commission by 2 January
201410. In that context, the Commission will in particular examine whether the role of the
EBA with regard to stress testing exercises needs to be strengthened, to avoid making the
authority too dependent on information and contributions by those authorities competent for
assessing the effective resilience of the banking sector across the Union.
In parallel, the Commission will continue to strengthen financial stability and ensure a level
playing field in the EU single market for banking through its control of state aid and
conditionality for economic adjustment aid.
Key actions
The Commission calls on the European Parliament and the Council to reach agreement by
end-2012 on:
(i) the CRD4 proposals, making them applicable both across the single market and within the
context of the single supervisory mechanism;
(ii) the proposal for a Directive on Deposit Guarantee Schemes as proposed by the
Commission;
(iii) the proposal for a Directive on bank recovery and resolution.
3. COMPLETING THE BANKING UNION
As set out by the Commission11 before the June 2012 European Council and in the report of
the Presidents of the European Council, the Commission, the Eurogroup and the European
Central Bank of 26 June 201212, completing the banking union will require further work to
deliver a single supervisory mechanism, a common system for deposit guarantees and an
integrated crisis management framework. The establishment of the single supervisory
mechanism is a crucial and significant first step.
10
Pursuant to Article 81 of the Regulations establishing the European Supervisory Authorities [Regulation (EU)
No 1093/2010, Regulation (EU) No 1094/2010, and Regulation (EU) No 1095/2010]
11
http://ec.europa.eu/europe2020/banking-union/index_en.htm
12
http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/131201.pdf
6
7. 3.1. A Single Supervisory Mechanism
The single supervisory mechanism which the Commission is proposing today is based on the
transfer to the European level of specific, key supervisory tasks for banks established in the
Euro Area Member States. While retaining ultimate responsibility, the ECB would carry out
its tasks within the single supervisory mechanism composed of the ECB and national
supervisory authorities. This structure will provide strong and consistent supervision across
the Euro Area, while making best use of the local and specific know-how of national
supervisors. This will ensure that supervision remains highly aware of all national and local
conditions relevant for financial stability. The Commission also proposes a mechanism which
will allow Member States which have not adopted the Euro, but would like to participate in
the single supervisory mechanism, to cooperate closely with the ECB.
Under the single supervisory mechanism, the ECB will become responsible for supervising all
banks within the banking union, to which it will apply the single rulebook applicable across
the single market. Recent experience has shown that difficulties, even in relatively small
banks, can have significant negative impacts on the financial stability of Member States.
Therefore, from the first day, the ECB will be empowered to take over the supervision of any
bank in the Euro Area if it so decides, in particular if the bank is receiving public support. For
all other banks, ECB supervision will be phased in automatically: on 1 July 2013 for the most
significant European systemically important banks, and on 1 January 2014 for all other banks.
Therefore, by 1 January 2014 all banks in the Euro Area will come under European
supervision.
The ECB will be granted key specific supervisory tasks which are indispensable to ensure
detection of risks threatening the viability of banks. It will be empowered to require banks to
take the necessary remedial action. The ECB will, inter alia, be the competent authority for
authorizing credit institutions, assessing qualifying holdings, ensuring compliance with the
minimum capital requirements, ensuring the adequacy of internal capital in relation to the risk
profile of a credit institution ("Pillar 2 measures"), conducting supervision on a consolidated
basis and supervisory tasks in relation to financial conglomerates. The ECB will also ensure
compliance with provisions on leverage and liquidity, apply capital buffers and carry out, in
coordination with resolution authorities, early intervention measures when a bank is in breach
of, or is about to breach, regulatory capital requirements.
The ECB will be vested with the necessary investigatory and supervisory powers to perform
its tasks. Active involvement of national supervisors within the SSM is provided for to ensure
the smooth and efficient preparation and implementation of supervisory decisions as well as
the necessary coordination and information flow regarding issues of both local and European
reach, in order to ensure financial stability across the Union and its Member States.
All tasks not explicitly conferred upon the ECB will remain with national supervisors. For
example, national supervisors will remain in charge of consumer protection and the fight
against money laundering, and of the supervision of third country credit institutions
establishing branches or providing cross-border services within a Member State.
7
8. The ECB must be able to carry out its new supervisory functions in full independence whilst
being fully accountable for its actions. The Commission proposal contains strong
accountability safeguards, notably vis-à-vis the European Parliament and the Council, to
ensure democratic legitimacy. In addition, the proposal lays down a number of organisational
principles to ensure clear separation between monetary policy and supervision. This will
mitigate potential conflicts between different policy objectives, while at the same time
allowing full advantage to be taken of synergies. All preparatory activities and policy
execution will therefore be carried out by bodies and administrative divisions separate from
monetary policy functions through a supervisory board established within the ECB for this
express purpose.
Finally, the proposed amendments of the EBA Regulation will ensure that the EBA can
continue to fulfil its mission effectively as regards all Member States. In particular, EBA will
exercise its powers and tasks also vis-à-vis the ECB. Voting arrangements within the EBA
will be adapted to ensure EBA decision-making structures continue to be balanced and
effective reflecting the positions of the competent authorities of Member States participating
in the single supervisory mechanism and those which do not, and thereby preserving fully the
integrity of the single market. Amendments of voting arrangements have been targeted to
those areas where the EBA takes binding decisions on the application of the single rulebook
when pursuing breaches of law and settling disagreements. In other areas, existing procedural
safeguards are considered sufficient to ensure balanced and effective decisions making in
those areas. For example, draft technical standards are submitted to the Commission for
adoption, and the Commission can decide not to endorse or to modify them, in particular
when they are not in full conformity with the fundamental principles of the internal market for
financial services. Finally, a targeted review clause has been inserted in the draft Regulation
amending Regulation 1093/2010 so as to take into account in particular any developments in
the number of Member States whose currency is the Euro or whose competent authorities
have entered into a close cooperation and examine whether in light of such developments any
further adjustments of those provisions are necessary to ensure that EBA decisions are taken
in the interest of maintaining and strengthening the internal market for financial services.
Key Actions
The Commission calls:
(i) on the Council to consider and adopt urgently the proposal for a Council Regulation
conferring specific tasks on the ECB concerning policies relating to the prudential
supervision of credit institutions taking into account the opinion of the European Parliament;
(ii) on the European Parliament and the Council to consider and adopt urgently the proposal
amending Regulation 1093/2010 establishing the EBA.
Agreement on these two proposals should be reached before the end of 2012.
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9. 3.2. Next Steps in the Management of Bank Crises
Global financial integration and the EU single market have enabled the banking sector in
some Member States to outgrow national GDP many times over, resulting in institutions
which are "too-big-to-fail" and "too-big-to-save" under existing national arrangements. On the
other hand, experience shows that the failure of even relatively small banks may cause cross-
border systemic damage. Furthermore, bank runs across borders can critically weaken
national banking systems, further damaging the fiscal standing of the sovereign, and hastening
funding problems for both.
Reinforced supervision within the banking union will help improve the robustness of banks. If
a crisis nonetheless occurs it is necessary to ensure that institutions can be resolved in an
orderly manner and that depositors are assured their savings are safe.
Against this background, the Commission has underlined13 that a banking union should
include a more centralised management of banking crises. The European Parliament has also
called for progress in this area. The need for "common mechanisms to resolve banks and
guarantee customer deposits" was also referred to in the report by the Presidents of the
European Council, the Commission, the Eurogroup and the European Central Bank of 26 June
201214.
Therefore, the Commission envisages notably making a proposal for a single resolution
mechanism which would govern the resolution of banks and coordinate in particular the
application of resolution tools to banks within the banking union. This mechanism would be
more efficient than a network of national resolution authorities, in particular in the case of
cross-border failures, given the need for speed and credibility in addressing banking crises. It
would be a natural complement to the establishment of a single supervisory mechanism. It
would also entail significant economies of scale, and avoid the negative externalities that may
derive from purely national decisions. It would take its decisions in line with the principles of
resolution set out in the single rulebook which are consistent with international best practice
and in full compliance with Union state aid rules. In particular shareholders and creditors
should bear the costs of resolution before any external funding is granted, and private sector
solutions should be found instead of using taxpayers' money.
Moreover, and based on an assessment of its functioning, such a single resolution mechanism
could also be entrusted with further tasks of coordination regarding the management of crisis
situations and resolution tools in the banking sector, as set out in the report presented in June
2012 by the Presidents of the European Council, the Commission, the ECB and the
Eurogroup.
13
http://ec.europa.eu/europe2020/banking-union/index_en.htm
14
http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/131201.pdf
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10. Key actions
Once agreement on the existing DGS and Bank Recovery and Resolution proposals is
achieved, the Commission envisages to propose notably a single resolution mechanism to
resolve banks and to coordinate the application of resolution tools to banks under the banking
union.
4. NEXT STEPS
The European Union has the means to address its current weaknesses and set up the banking
union as an essential step towards a genuine Economic and Monetary Union.
The Commission calls on the European Parliament and the Council to:
– give their full support to the banking union and endorse the orientations and roadmap
described in this Communication;
– give the highest priority in the legislative process to the actions necessary for
establishing the banking union;
– finalise, as soon as possible and in any case before the end of the year, the proposals
on the table on:
– Deposit Guarantee Schemes;
– access to the activity of credit institutions and the prudential supervision of
credit institutions and investment firms (CRD);
– prudential requirements for credit institutions and investment firms (CRR);
– a framework for the recovery and resolution of credit institutions and
investment firms;
– conferring certain tasks on the ECB relating to the prudential supervision of
credit institutions;
– amending certain provisions of the EBA Regulation.
With this communication and the accompanying legislative proposals, the Commission has
acted swiftly and responsibly in response to the mandate given by the European Council and
the Heads of State and Government of the Euro area at the end of June. Other institutions now
need to do their part to ensure the single supervisory mechanism is established by 1 January
2013.
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