Discussions about the banking union have restarted. Its success so far is limited: national banking sectors are still overwhelmingly exposed to their own countries’ economies, cross border banking has not increased and capital and liquidity remain locked within national boundaries. The policy...

If bank services provide positive externalities to society, then not all taxpayer risk should be removed. - Regulation and supervision should aim at balancing the risks and benefits of banking, taking into account all externalities involved. The correct solution is not one in which all taxpayer...

If bank services provide positive externalities to society, then not all taxpayer risk should be removed. - Regulation and supervision should aim at balancing the risks and benefits of banking, taking into account all externalities involved. The correct solution is not one in which all taxpayer...

On 3 December EY hosted a SUERF conference on banking reform with Sir Howard Davies, the Chairman of RBS, and Dame Colette Bowe, the Chairman of the Banking Standards Board, as the two keynote speakers. Professor David Miles (Imperial College) gave the SUERF 2015 Annual Lecture on Capital and...

Over the past decade, the Single Supervisory Mechanism focused on making banks safer, resulting in stronger banks but limited euro area cross-border integration. We argue that overbanking hinders both cross-border integration for the EU and the development and integration of capital markets. In...

We introduce banks, modeled as in Diamond and Rajan (JoF 2000 or JPE 2001), into a standard DSGE model and use this framework to study the role of banks in the transmission of shocks, the effects of monetary policy when banks are exposed to runs, and the interplay between monetary policy and...