Italian solution of failing banks and its importance for banking union completion

Italské řešení selhávajících bank a jeho význam pro dokončení bankovní unie

Jan Famfollet and Eliška Straková

Současná Evropa, 2018, vol. 2018, issue 1, 44-56

Abstract: The banking union creates the system for banking supervision and banking crises solution based on single European Union rules. The Bank Recovery and Resolution Directive (BRRD) means an important milestone, the main goal of which is to limit government assistance to failing banks (bailout) and replace it with a bail-in system. The article focuses on Italian banking crises solution and points out that despite the existence of banking union rules, there is legal possibility to circumvent and save banks via the public finances (bailout). On the one hand "Italian solution" confirms that there are strong weaknesses in the current rules of the banking union, on the other hand it can be interpreted as a flexible framework that can be tailored to a specific country. The article explains the reasons for the distinct solution of the banking crisis in the Italian banking sector and evaluates the impact of this solution on the further banking union completion.

Keywords: Banking union; BRRD; Bail-in; Bailout; Precautionary recapitalisation; Italian banking sector; bankovní unie; bail-in; bailout; preventivní rekapitalizace; italský bankovní sektor (search for similar items in EconPapers)
JEL-codes: G18 G21 G33 G38 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://wep.vse.cz/artkey/sev-201801-0004_italske-r ... ni-bankovni-unie.php (text/html)
http://wep.vse.cz/pdfs/sev/2018/01/04.pdf (application/pdf)
free of charge

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:prg:jnlsev:v:2018:y:2018:i:1:id:154:p:44-56

Ordering information: This journal article can be ordered from
Centrum evropských studií VŠE Praha
http://wep.vse.cz

Access Statistics for this article

Současná Evropa is currently edited by Josef Bič

More articles in Současná Evropa from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().