The Banking Union
A Radical Step in the Reform of the EU Financial Supervisory Systems
The financial crisis has prompted a substantial overhaul of the financial regulatory and supervisory framework in the EU. With the euro area crisis deepening there is evidence that the current supervision of financial markets, based mainly on action by national supervisory authorities and some cooperation is not sustainable. In this seminar, the September proposals for a banking union by the European Commission will be discussed.
In the late 90s/early 2000 first changes to the financial regulatory and supervisory framework of the EU were aimed at adapting it to the extremely dynamic and innovative financial markets so as to render it more responsive to regulatory needs. The four-level Lamfalussy framework for regulation was introduced. The financial crisis starting in 2009 however revealed more shortcomings into the regulatory framework and prompted for more emphasis on financial supervision. This led to the establishment of the three European Supervisory Authorities and of the European Systemic Risk Board. With the euro area crisis deepening since then there is evidence that the current supervision of financial markets, based mainly on action by national supervisory authorities and some cooperation is not sustainable. Further adaptation of the framework is needed aiming at ensuring banking supervision at European level. The September proposals for a banking union by the European Commission show the direction to be taken, with the European Central Bank seen as the central institutional actor. We will discuss the Commission's proposals, identifying the role to be played by the different actors, their legal status, powers and instruments, their possible interaction, as well as the extent of change.
Larisa Dragomir works in the DG Internal Market and Services of the European Commission on financial regulation and is author of European Prudential Banking Regulation and Supervision (Routlegde, 2010). She is an expert in EU banking law and supervisory issues and has previously worked with the European Savings Banks Group (Brussels) and the European Central Bank (Frankfurt). Larisa Dragomir received her Ph.D. at the European University Institute in Florence.
Attendance is free of charge. For organizational reasons, please sign up for the meeting by sending an email to firstname.lastname@example.org.