Financial regulation in the EU: Cross-border capital flows, systemic risk and the European Banking Union as reference points for EU financial market integration

Brigitte Haar

No 57, SAFE Working Paper Series from Leibniz Institute for Financial Research SAFE

Abstract: This is a chapter for a forthcoming volume Oxford Handbook of Financial Regulation (Oxford University Press 2014) (eds. Eilís Ferran, Niamh Moloney, and Jennifer Payne). It provides an overview of EU financial regulation from the first banking directive up until its most recent developments in the aftermath of the financial crisis, focusing on the multiple layers of multi-level governance and their characteristic conceptual difficulties. Therefore the paper discusses the need to accommodate cross-border capital flows following from the EU internal market and the resulting regulatory strategies. This includes a brief overview of the principle of home country control and the ensuing Financial Services Action Plan. Dealing with the accommodation of cross-border capital flows and their regulation necessarily require an orchestration of the underlying supervisory structures, which is therefore also discussed. In the aftermath of the financial crisis of 2007-09 an additional aspect of necessary orchestration has emerged, that is the need to control systemic risk. Specific attention is paid to microprudential supervision by the newly established European Supervisory Authorities and macroprudential supervision in the European Banking Union, the latter's underlying drivers and the accompanying Single Supervisory Mechanism, including the SSM's institutional framework as well as the consideration of its rationales and the Single Resolution Mechanism closely linked to it.

Keywords: Financial regulation; systemic risk; microprudential supervision; European Banking Authority; macroprudential supervision; European Systemic Risk Board; European Banking Union; Single Supervisory Mechanism (search for similar items in EconPapers)
JEL-codes: G21 G28 G38 K22 K23 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-ban and nep-cba
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/98700/1/789844419.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:safewp:57

Access Statistics for this paper

More papers in SAFE Working Paper Series from Leibniz Institute for Financial Research SAFE Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().