The 2023 US banking crises: causes, policy responses, and lessons

Maurizio Trapanese (coordinator) (), Giorgio Albareto (), Salvatore Cardillo (), Massimo Castagna (), Riccardo Falconi (), Gennaro Pezzullo (), Luca Serafini () and Federico Signore ()
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Maurizio Trapanese (coordinator): Bank of Italy
Giorgio Albareto: Bank of Italy
Salvatore Cardillo: Bank of Italy
Massimo Castagna: Bank of Italy
Riccardo Falconi: Bank of Italy
Gennaro Pezzullo: Bank of Italy
Luca Serafini: Bank of Italy
Federico Signore: Bank of Italy

No 870, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: This paper explores whether there are lessons to be drawn from the 2023 US banking crises which can help improve the EU framework for prudential supervision and crisis management. It examines the common features of the US banking failures, the main triggers of the crises and their subsequent dynamics, and outlines the policy responses of the US authorities. These crises are compared with other past banking crises in order to highlight commonalities and differences. As to the policy lessons, the paper underlines that: supervisory authorities should pay greater attention to the fact that the crises of banks not labelled as systemic could also have systemic implications; financial stability could be undermined by an incomplete application of the internationally agreed prudential standards; targeted revisions of the EU prudential rules could be taken into consideration, once the work at the global level is finalized; with reference to specific aspects, the degrees of flexibility in the EU system for crisis management could be widened. Finally, the paper examines the pros and cons of an increase in the level of deposit protection in the EU.

Keywords: financial crises; banks; financial policy and regulation; crisis management (search for similar items in EconPapers)
JEL-codes: G01 G21 G28 H12 (search for similar items in EconPapers)
Date: 2024-07
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