Testing European Prudential Conditions for Banking Mergers in the Light of Most Favoured Nation in the Gats
This contribution examines how European conditions for takeovers of a European credit institution by a non-European credit institution may be assessed under the principle of Most Favoured Nation (MFN) in the General Agreement on Trade in Services (GATS). The article considers that violations are not unimaginable since current WTO case-law on 'likeness' insufficiently takes into account the risks that are linked to different prudential frameworks in which banks operate. However, a differentiation among banks from different trading partners through decisions on the 'equivalence' of consolidated supervision by certain non-European authorities with European supervision, may be saved under the GATS provisions on recognition. Nonetheless, lack of transparency in these decisions may remain problematic. Even if the prudential carve-out provides a broad exception for prudential measures, it may not necessarily justify this deficiency. The article illustrates how the European rules comply with GATS requirements and how consistency could further be ensured. It is shown that international prudential standards may play an important role in the interpretation of these provisions. The article argues that the GATS-scrutiny as well as the importance of international standards requires the European Union to intensify its efforts on international standard-setting. , Oxford University Press.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 11 (2008)
Issue (Month): 3 (September)
|Contact details of provider:|| Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK|
Fax: 01865 267 985
Web page: http://www.jiel.oupjournals.org/
|Order Information:||Web: http://www.oup.co.uk/journals|
When requesting a correction, please mention this item's handle: RePEc:oup:jieclw:v:11:y:2008:i:3:p:609-647. 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: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.