This paper reviews the various mechanisms and rules that has been proposed to build a banking uni... more This paper reviews the various mechanisms and rules that has been proposed to build a banking union in Europe. We argue that the banking union is a promising solution to the Eurozone crisis because it completes the unification of the Euro currency, forms a solution to both the financial and monetary fragmentation of the Euro area financial markets and helps breaking the vicious circle created by domestic banking system impairments and the sovereign debt crisis. We underline not only the shortcomings and hurdles to reach a fully‐ fledged banking union, and the hazards created by the inconsistencies between their phasing‐in in the sequential schedule decided by states. To reduce the loopholes induced by the sequential approach, we propose to implement a rule of shared‐bailout during the transition period that consist in a loss‐sharing rule among countries hosting an entity of a bank group and indicted in the living wills of the systemic banking companies.
As a result of cross-sector and cross-border integration, European financial systems have become ... more As a result of cross-sector and cross-border integration, European financial systems have become more interwoven, both nationally and internationally. More particularly, they have become more complex in terms of risk interdependencies. Financial stability is obviously affected by these financial changes. Based on a critical analysis of the current European prudential framework?s ability to face this new risk profile, we argue
Contrary to literature on the prevention of bank crisis which is very developed, literature on ba... more Contrary to literature on the prevention of bank crisis which is very developed, literature on bank resolution policies and insolvency law is still relatively small even if academic interest is growing. Because of the systemic repercussions of bank crisis which can dramatically affect both financial and real sectors, banks are subject to specific supervision and regulation by prudential authorities. The
[fre] L'assurance-dépôts a pour vocation de préserver la stabilité du système bancaire. Cett... more [fre] L'assurance-dépôts a pour vocation de préserver la stabilité du système bancaire. Cette fonction étant renforcée par le processus de globalisation financière. Il est donc nécessaire d'imaginer un système spécifique d'assurance-dépôts pour la future union monétaire européenne. Cet article, se référant à la littérature récente sur le sujet, essaie de proposer quelques principes d'organisation et de fonctionnement pour une assurance-dépôts proprement communautaire. [eng] Deposit insurance aims to preserve the stability of the banking system. This function is reinforced by the process of financial globalization. Thus, it is necessary to design a specific system of deposit insurance for the future European monetary union. This article, using the recent literature on this topic, try to propose some principles of organization for a European deposit insurance.
ABSTRACT [fre] Laurence Scialom Banque centrale européenne et fonction de prêteur en dernier ress... more ABSTRACT [fre] Laurence Scialom Banque centrale européenne et fonction de prêteur en dernier ressort. L'objet de cet article consiste à émettre quelques suggestions quant à la mise en œuvre de la fonction de prêteur en dernier ressort dans le futur système européen de banques centrales, en mettant notamment l'accent sur la possibilité d'une certaine décentralisation des compétences dans ce domaine. Cette réflexion prend pour base l'expérience américaine, dont l'exploitation est justifiée dans la première partie de l'article par la mise en exergue des similitudes existant entre les conditions de la création du Système Fédéral de Réserve au début du siècle et celles qui prévalent actuellement en Europe. [eng] Laurence Scialom European central bank and the function of lender of last resort. This article aims to discuss some suggestions regarding the implementation of the function of lender of last resort in the futur European system of central banks. The main focus of the article will be on the possibility of a decentralisation of these responsabilities within such a system. The discussion will be based on the U.S. experience, the use of which will be justified in the first part of the article by pointing out the similarities that exist between the conditions of the creation of the Federal Reserve System at the beginning of the century, and those that are currently prevailing in Europe.
ABSTRACT Financial markets are integrating fast with the advent of the euro. To cope with accrued... more ABSTRACT Financial markets are integrating fast with the advent of the euro. To cope with accrued competition, financial intermediaries have developed mergers. Credit and market risk are so correlated it poses problem to prudential regulation. This article proposes some ways of reforms. JEL Classifications : G28
ABSTRACT For a prudential regulation policy Financial markets are integrating fast with the adven... more ABSTRACT For a prudential regulation policy Financial markets are integrating fast with the advent of the euro. To cope with accrued competition, financial intermediaries have developed mergers. Credit and market risk are so correlated it poses problem to prudential regulation. This article proposes some ways of reforms. Classification JEL : G28
ABSTRACT Towards a new prudential doctrine The purpose of this paper is to underline the irreleva... more ABSTRACT Towards a new prudential doctrine The purpose of this paper is to underline the irrelevance of the neo-classical theory of contracts to treat the control of banking risks in a liberalised and global financing system. Following a theoretical discussion supporting our assertion, we illustrate our point of view by analysing two important and specific problems of prudential regulation. On one side, we study the question of derivative markets and the correlation recognition of bank’s internal control models by the supervisor. On the other side, we emphasize the prudential problems generated by the constitution of financial conglomerates.
This paper reviews the various mechanisms and rules that has been proposed to build a banking uni... more This paper reviews the various mechanisms and rules that has been proposed to build a banking union in Europe. We argue that the banking union is a promising solution to the Eurozone crisis because it completes the unification of the Euro currency, forms a solution to both the financial and monetary fragmentation of the Euro area financial markets and helps breaking the vicious circle created by domestic banking system impairments and the sovereign debt crisis. We underline not only the shortcomings and hurdles to reach a fully‐ fledged banking union, and the hazards created by the inconsistencies between their phasing‐in in the sequential schedule decided by states. To reduce the loopholes induced by the sequential approach, we propose to implement a rule of shared‐bailout during the transition period that consist in a loss‐sharing rule among countries hosting an entity of a bank group and indicted in the living wills of the systemic banking companies.
As a result of cross-sector and cross-border integration, European financial systems have become ... more As a result of cross-sector and cross-border integration, European financial systems have become more interwoven, both nationally and internationally. More particularly, they have become more complex in terms of risk interdependencies. Financial stability is obviously affected by these financial changes. Based on a critical analysis of the current European prudential framework?s ability to face this new risk profile, we argue
Contrary to literature on the prevention of bank crisis which is very developed, literature on ba... more Contrary to literature on the prevention of bank crisis which is very developed, literature on bank resolution policies and insolvency law is still relatively small even if academic interest is growing. Because of the systemic repercussions of bank crisis which can dramatically affect both financial and real sectors, banks are subject to specific supervision and regulation by prudential authorities. The
[fre] L'assurance-dépôts a pour vocation de préserver la stabilité du système bancaire. Cett... more [fre] L'assurance-dépôts a pour vocation de préserver la stabilité du système bancaire. Cette fonction étant renforcée par le processus de globalisation financière. Il est donc nécessaire d'imaginer un système spécifique d'assurance-dépôts pour la future union monétaire européenne. Cet article, se référant à la littérature récente sur le sujet, essaie de proposer quelques principes d'organisation et de fonctionnement pour une assurance-dépôts proprement communautaire. [eng] Deposit insurance aims to preserve the stability of the banking system. This function is reinforced by the process of financial globalization. Thus, it is necessary to design a specific system of deposit insurance for the future European monetary union. This article, using the recent literature on this topic, try to propose some principles of organization for a European deposit insurance.
ABSTRACT [fre] Laurence Scialom Banque centrale européenne et fonction de prêteur en dernier ress... more ABSTRACT [fre] Laurence Scialom Banque centrale européenne et fonction de prêteur en dernier ressort. L'objet de cet article consiste à émettre quelques suggestions quant à la mise en œuvre de la fonction de prêteur en dernier ressort dans le futur système européen de banques centrales, en mettant notamment l'accent sur la possibilité d'une certaine décentralisation des compétences dans ce domaine. Cette réflexion prend pour base l'expérience américaine, dont l'exploitation est justifiée dans la première partie de l'article par la mise en exergue des similitudes existant entre les conditions de la création du Système Fédéral de Réserve au début du siècle et celles qui prévalent actuellement en Europe. [eng] Laurence Scialom European central bank and the function of lender of last resort. This article aims to discuss some suggestions regarding the implementation of the function of lender of last resort in the futur European system of central banks. The main focus of the article will be on the possibility of a decentralisation of these responsabilities within such a system. The discussion will be based on the U.S. experience, the use of which will be justified in the first part of the article by pointing out the similarities that exist between the conditions of the creation of the Federal Reserve System at the beginning of the century, and those that are currently prevailing in Europe.
ABSTRACT Financial markets are integrating fast with the advent of the euro. To cope with accrued... more ABSTRACT Financial markets are integrating fast with the advent of the euro. To cope with accrued competition, financial intermediaries have developed mergers. Credit and market risk are so correlated it poses problem to prudential regulation. This article proposes some ways of reforms. JEL Classifications : G28
ABSTRACT For a prudential regulation policy Financial markets are integrating fast with the adven... more ABSTRACT For a prudential regulation policy Financial markets are integrating fast with the advent of the euro. To cope with accrued competition, financial intermediaries have developed mergers. Credit and market risk are so correlated it poses problem to prudential regulation. This article proposes some ways of reforms. Classification JEL : G28
ABSTRACT Towards a new prudential doctrine The purpose of this paper is to underline the irreleva... more ABSTRACT Towards a new prudential doctrine The purpose of this paper is to underline the irrelevance of the neo-classical theory of contracts to treat the control of banking risks in a liberalised and global financing system. Following a theoretical discussion supporting our assertion, we illustrate our point of view by analysing two important and specific problems of prudential regulation. On one side, we study the question of derivative markets and the correlation recognition of bank’s internal control models by the supervisor. On the other side, we emphasize the prudential problems generated by the constitution of financial conglomerates.
Uploads
Papers by Laurence Scialom