Economic recovery after COVID-19 requires a clear vision for a healthy banking sector By Alexander Lehmann and Reiner Martin, courtesy of the Bruegel Institute The end of payment holidays and the winding-down of public support schemes in the post-COVID-19 recovery will expose large stocks of non-performing loans (NPLs). European Central Bank estimates, based on earlier […]
Tag: banking
Why do Argentines save in dollars?
By Libertad y Progreso, courtesy of Ámbito Financiero “Whoever bets on the dollar loses.” This famous phrase was said by former Minister of Economy Lorenzo Sigaut in 1981, to try to convince Argentines to stop saving in dollars. As expected, reality prevailed with an exchange rate escalation. Today the BCRA is […]
Why German banking rules are different
“Banking regulation in the Euro Area: Germany is different” By Nicolas Véron, courtesy of the Bruegel Institute Despite progress in recent years towards a single banking policy framework in the euro area – a banking union – much of the German banking system has remained partly sheltered from uniform rules and disciplines that now […]
Europeans take the Euro for granted
By Joris Melman and Giuseppe Porcaro, courtesy of the Bruegel Institute How can we understand citizens’ attitudes towards the euro and its politics? A previous research project studied narratives of the euro crisis and explored the blame game that marked these years. The study found part of the answer to why it has been so hard […]
In favor of climate-based stress tests for banks
“Climate risks to European banks: a new era of stress tests” By Alexander Lehmann, courtesy of the Bruegel Institute The release of a proposed methodology for assessing climate risks within UK banks and insurers by the Bank of England just before Christmas has fueled calls for a similar ‘climate stress test’ for European […]
Europe needs a money laundering czar to lead crackdown
“A European anti–money laundering supervisor: From vision to legislation” By Nicolas Véron and Joshua Kirschenbaum, courtesy of the Bruegel Institute The European Union is moving toward implementing a policy to strengthen anti–money laundering (AML) supervision across its Single Market, namely enforcing requirements on banks and other firms to ensure they do not facilitate […]
Don’t loosen bank rules for Green New Deal
“European green finance is expanding, a discount on bank capital would discredit it” By Alexander Lehmann, courtesy of the Bruegel Institute The Commission’s ‘European Green Deal’ sets out massive investment needs in a variety of areas, amounting to potentially 1.5 per cent of the EU’s annual GDP. If these targets are to be […]
Does “Singapore on steroids” appeal to northern voters?
“‘Getting Brexit Done’ and financial services” By Prof. Sarah Hall, courtesy of UK In a Changing Europe 2020 will bring questions of trade and trade policy to the foreground of the Brexit process. Following his election victory, Boris Johnson has made clear that he intends to take the UK out of the EU […]
FinTech: Not so innovative after all?
“FinTech Companies; little innovation and no reform of banking” By Gordon Kerr, Cavin O’Driscoll, and Enrico Colombatto, courtesy of IREF New entrants into every aspect of banking were encouraged by two recent regulatory developments: the Open Banking initiative and the ‘sandboxing’ exemptions from regulations. Open Banking, part of the Payment Services Directive […]
Whither the EU? (Wither the EU?)
“What Next, EU?” By Dr. Rudolf Pozgay, courtesy of the Austrian Economics Center 1.Introduction The amount of economic and social challenges that the European Union has faced to date have given rise to the idea that EU reform is required. An example of such efforts is Juncker’s “White book” with five possible […]