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Den Bock zum Gärtner machen? – Eine ordnungspolitische Hinterfragung der Bankenunion / ECB as single supervisory authority: Setting the fox to watch the geese?

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  • Kerber Markus C.

Abstract

ECB pursues its policy of accomplishing its monetary powers by fiscal policy. In that context ECB has pumped liquidity into the European banking system and has watered down eligibility requirements for collaterals. Despite that risky policy ECB aims at becoming through the banking union the central supervisor for microprudential controlling in the euro zone. ECB is now expected, after the identification of failing banks, to request the single resolution mechanism for their liquidation. Thus the Union organ, which is supposed to pay tribute to the priority objective of price stability, is enabled to accomplish a mission which the bank cannot solve without putting its independence at risk. The central refinancing instance which has accepted for the sake of banks high risks and historically unique interest conditions, is now supposed to catch up with the consequences of its liquidity and collateral policy. Nevertheless ECB refuses to stop the privileged refinancing of the state by banks.

Suggested Citation

  • Kerber Markus C., 2014. "Den Bock zum Gärtner machen? – Eine ordnungspolitische Hinterfragung der Bankenunion / ECB as single supervisory authority: Setting the fox to watch the geese?," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 65(1), pages 75-98, January.
    • Handle: RePEc:bpj:ordojb:v:65:y:2014:i:1:p:75-98:n:6
    DOI: 10.1515/ordo-2014-0106
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    References listed on IDEAS

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    1. Markus Kerber, 2013. "Der Europäische Stabilitätsmechanismus ist eine Hydra," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 93(7), pages 455-461, July.
    2. Kerber Markus C., 2012. "Spielmacher der Wettbewerbsverfälschung? Anmerkungen zur Rolle der EZB auf den Kapitalmärkten / The Distortion of Competition organised by Central Banks. Comments on the role of ECB on capital markets," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 63(1), pages 63-84, January.
    3. Lehmann Matthias, 2013. "Die Ausgestaltung grenzüberschreitender Bankenaufsicht als ordnungspolitisches Problem / The Optimal Design of Cross-Border Banking Supervision As a Policy Problem," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 64(1), pages 327-348, January.
    4. Claudio Borio, 2014. "The international monetary and financial system: its Achilles heel and what to do about it," BIS Working Papers 456, Bank for International Settlements.
    5. Chiara Angeloni & Guntram B. Wolff, 2012. "Are banks affected by their holdings of government debt?," Working Papers 717, Bruegel.
    6. Roland Vaubel, 2013. "Probleme der Bankenunion: Falsche Lehren aus der Krise," Credit and Capital Markets, Credit and Capital Markets, vol. 46(3), pages 281-302.
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    1. Vollmer Uwe, 2015. "‚Stairway to Heaven‘ oder ‚Highway to Hell‘? – Eine Einschätzung der Europäischen Bankenunion / ‚Stairway to Heaven‘ or ‚Highway to Hell‘? – An Evaluation of the European Banking Union," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 66(1), pages 147-174, January.

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