The Case for a European Banking Charter

Author/Editor:

Martin Cihak ; Jörg Decressin

Publication Date:

July 1, 2007

Electronic Access:

Free Full text (PDF file size is 421 KB).Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Most financial institutions in the European Union (EU) are still based in one country, but a number of large financial institutions (LCFI) have systemic cross-border exposures. The paper explains how, despite much progress, nationally-segmented supervisory frameworks and national accountability for financial stability hinder optimization across borders of banks' operations and efficient and effective LCFI supervision. A full-fledged EU-level prudential regime that operates along-side national regimes--a European Banking Charter (EBC)--could harness market forces to establish a level playing field for financial sector competition, while plugging some significant gaps in Europe's financial stability framework without concentrating excessive powers.

Series:

Working Paper No. 07/173

Subject:

English

Publication Date:

July 1, 2007

ISBN/ISSN:

9781451867374/1018-5941

Stock No:

WPIEA2007173

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

34

Please address any questions about this title to publications@imf.org