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The provision of critical functions at global, national or regional level. Is there a need for further legal/regulatory clarification if liquidation is the default option for failing banks? CEPS Special Report, 19 December 2017

de Groen, Willem Pieter (2017) The provision of critical functions at global, national or regional level. Is there a need for further legal/regulatory clarification if liquidation is the default option for failing banks? CEPS Special Report, 19 December 2017. [Policy Paper]

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    Abstract

    The introduction of a bank resolution framework for EU banks has created the need for clear legal definitions of the main elements in resolution. This paper assesses one of these elements, namely “critical functions”, which encompasses the activities of a bank that are of significant importance for the real economy. The assessment of the regulation and implementation shows that there is room for sharpening the definition and equal application across all banks. It is questionable, however, whether regulatory intervention is necessary given the on-going work of authorities at different levels. In turn, legislative intervention will be required to align the objectives of the resolution framework and state aid. The latter currently leaves more room for public support measures, which are not necessarily in the public interest.

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    Item Type: Policy Paper
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > economic and financial affairs > banks/financial markets
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Centre for European Policy Studies (Brussels) > CEPS Special Reports
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 04 Jan 2018 12:03
    Number of Pages: 23
    Last Modified: 04 Jan 2018 13:47
    URI: http://aei.pitt.edu/id/eprint/92806

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