Five Actions to Strengthen the Euro Area Banking Union

2019-03-13T10:49:35-04:00December 14, 2018|

By Atilla Arda, Daniel Hardy, and Maike B. Luedersen

December 14, 2018

Français, Italiano

View of skyscrapers in the banking district in Frankfurt am Main, Germany: Progress has been made, but more needs to be done to strengthen the euro area’s banking union (photo: imageBROKER/Stefan Ziese/Newscom)

Dealing with problem banks in a prompt, efficient, and even-handed manner is essential for the European banking union. […]

How To Deal With Failed Banks

2019-03-14T09:56:10-04:00July 3, 2018|

By Deniz Igan

July 3, 2018

Versions in EspañolPortuguês

Reforms since the global financial crisis have made bail-ins a credible option and bail-outs less likely (photo: iStock by Getty Images)

During the global financial crisis, policymakers faced a steep trade-off in handling bank failures. Using public funds to rescue failing banks (bail-outs) could weaken market discipline and lead to excessive risk taking—the moral hazard effect. […]

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