Crisis Management and Resolution for a European Banking System

Author/Editor: Fonteyne, Wim ; Bossu, Wouter ; Cortavarria, Luis ; Giustiniani, Alessandro ; Gullo, Alessandro ; Hardy, Daniel C. L. ; Kerr, Sean
Publication Date: March 01, 2010
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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: This paper proposes an integrated crisis management and resolution framework for the EU's single banking market. It comprises a European Resolution Authority (ERA), armed with the mandate and the tools to deal cost-effectively with failing systemic cross-border banks, and is designed to address many fundamental operational and incentive problems. It also seeks to reduce moral hazard and better protect countries against the risk of twin fiscal-financial crises by detaching banks from government budgets. The ERA would be most effective if it were twinned or combined with a European Deposit Insurance and Resolution Fund.
Series: Working Paper No. 10/70
Subject(s): Bank reforms | Bank resolution | Bank supervision | Banking crisis | Banking systems | Economic integration | European Monetary System | Financial crisis | Financial stability | Global Financial Crisis 2008-2009 | Risk management

Author's Keyword(s): Banking | financial stability | financial integration | financial crises | bank supervision | crisis management | crisis resolution | insolvency | European Union
Publication Date: March 01, 2010
Format: Paper
Stock No: WPIEA2010070 Pages: 99
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