Articles by author
The road to Banking Union
Bail-in is at the heart of the post-crisis reform in dealing with failing banks. But in the euro area bail-in must pass a public interest test before it can be used, and bail-in has become the exception not the norm. The norm remains “winding up of the entity under normal insolvency proceedings”. The public interest test should be reversed. The use of bail-in to achieve orderly liquidation under a solvent wind-down strategy should serve as the presumptive path for handling banks that are deemed to be “failing or likely to fail”. Together with the backstop from the European Stability Mechanism (ESM) for the Single Resolution Fund (SRF), the reversal of the public interest test will open the door to the creation of the Single Deposit Guarantee Scheme (SDGS) and to the completion of Banking Union.
1 MAR 2021Are sanctions sustainable?
In this Spotlight article Thomas F Huertas considers the impact of sanctions on financial stability and their importance for national security. He posits that financial regulators need to consider how sanctions should be integrated into the financial system without inflicting collateral damage on it.
1 MAY 2022
