Advanced Search
MyIDEAS: Login to save this article or follow this journal

Financial stability in the Eurozone: where do we stand?


Author Info

  • Arnold, Ivo J. M.

    (Nyenrode Business Universiteit)


At the start of the EMU, concerns about fiscal and monetary stability dominated the academic debate. In contrast, financial stability issues were largely overlooked. Since then, more attention has been paid to the implications of the EMU for financial regulation and supervision and to the drawbacks of government involvement in the domestic financial sector, both as owner and as debtor. This paper reassesses these issues and draws the following conclusions. Firstly, little progress has been made in centralizing financial supervision in the Eurozone. Secondly, with the exception of Germany, all Eurozone countries have made substantial progress in reducing state ownership in their banking systems. Thirdly, limited progress has been made in the reduction of bank exposures to domestic public debt. A continued retreat of governments from the financial sector is desirable, leaving bank ownership to the private sector, holdings of government debt to the public, and supervision to a specialized, independent European institution.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Article provided by Capco Institute in its journal Journal of Financial Transformation.

Volume (Year): 19 (2007)
Issue (Month): ()
Pages: 65-79

as in new window
Handle: RePEc:ris:jofitr:1401

Contact details of provider:
Postal: 120 Broadway, 29th Floor New York, NY 10271
Phone: +1 212 284 8600
Web page:

Related research

Keywords: European Monetary Union; fiscal and monetary stability; financial supervision;

Find related papers by JEL classification:


No references listed on IDEAS
You can help add them by filling out this form.


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Aerdt Houben & Iskander Schrijvers & Tim Willems, 2008. "The Supervision of Banks in Europe: The Case for a Tailor-made Set-up," DNB Occasional Studies 604, Netherlands Central Bank, Research Department.
  2. Arnold, Ivo J.M., 2012. "Sovereign debt exposures and banking risks in the current EU financial crisis," Journal of Policy Modeling, Elsevier, vol. 34(6), pages 906-920.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:ris:jofitr:1401. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Springett).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.