 Italian Bank Rescue: EU Resolution Directive and an “Italian Way”Dirk Meyer ()
Chapter Chapter 9 in European Union and Monetary Union in Permanent Crisis I, 2022, pp 133-160 from Springer Abstract: Abstract A negative deposit rate of the European Central Bank (ECB), an extremely low interest rate margin between deposit and lending business, the growing regulatory pressure and a high need for investment in IT technology: European banks are facing difficult times. With numerous Mediterranean commercial banks, a clientele policy, a structural weakness of the borrowing companies, a credit granting also risky for this reason, inadequate internal controls and insufficient external audits of the national supervisory authorities are added. In general, the relatively high proportion of government debt securities held by domestic financial institutions leads to an inauspicious connection that merges the sovereign debt crisis with the banking crisis. The newly established bank resolution mechanism provides for a “liability cascade” which is to protect the taxpayer from a claim by means of a creditor participation (bail-in) in the end. However, new aid and liability are being communalized via the European bank resolution fund and the ESM as a backstop. Date: 2022 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-658-38643-6_9 Ordering information: This item can be ordered from DOI: 10.1007/978-3-658-38643-6_9 Access Statistics for this chapter More chapters in Springer Books from Springer |
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