EU framework for safeguarding financial stability: Towards an analytical benchmark for assessing its effectiveness

María Nieto () and Garry Schinasi ()
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María Nieto: Banco de España
Garry Schinasi: International Monetary Fund

No 801, Occasional Papers from Banco de España

Abstract: European finance is becoming increasingly cross-border, while the European architecture for safeguarding financial stability —including decision-making processes for providing financial-stability public goods— have remained decentralized with some explicit mechanisms for coordination across countries. Policy makers are aware of the limitations of the existing institutional setting, but opinions on how to proceed, including on burden sharing, are lining up along national and regional political lines with less attention paid to European needs. This paper applies the ‘economics of alliances’ to examine these European policy challenges. The paper establishes benchmarks for assessing the ability of Europe’s existing institutional architecture to efficiently allocate resources to safeguard the EU financial system against systemic threats to stability, such as the insolvency of a pan European bank.

Keywords: Safeguarding EU financial stability; crisis resolution; burden sharing (search for similar items in EconPapers)
JEL-codes: C7 F3 G15 G20 G38 H41 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2008-02
New Economics Papers: this item is included in nep-cba and nep-eec
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Citations: View citations in EconPapers (9)

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http://www.bde.es/f/webbde/SES/Secciones/Publicaci ... s/08/Fic/do0801e.pdf First version, February 2008 (application/pdf)

Related works:
Working Paper: EU Framework for Safeguarding Financial Stability: Towards an Analytical Benchmark for Assessing its Effectiveness (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:bde:opaper:0801

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