European States and Financial Systems: A Biased Relationship
Public intervention in the banking sector takes three main forms: prudential regulation, especially with the Basel II ratio for adequacy of a bank's own funds for their exposure to risk ; insuring deposits, the goal of which is to ensure a minimum level of protection for depositors and savers in order to avoid a run on banks ; and control and supervision of banks by public authorities, which ensures that the rules are applied properly. Intervention by central banks, through their monetary policy and as lenders of last resort, constitutes the fourth means of regulating the banking system, and the main form of intervention in financial markets. Central banks intervene in order to ensure the stability of financial systems. The financial crisis has shown that traditional modes of public intervention in the financial system are ineffective and insufficient. Before analyzing the principles and limits of these forms of public intervention, we examine cases of exceptional intervention and support to banks by public powers during the crisis. Then, in conclusion, we compare these forms of public intervention with the current state of financial systems.
|Date of creation:||02 Oct 2012|
|Date of revision:|
|Publication status:||Published in The public action in crisis Toward a renewal in France and in Europe?, PURH, pp.336, 2012|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00758892|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Breitenfellner, Bastian & Wagner, Niklas, 2010. "Government intervention in response to the subprime financial crisis: The good into the pot, the bad into the crop," International Review of Financial Analysis, Elsevier, vol. 19(4), pages 289-297, September.
- Marek Dabrowski, 2009.
"The Global Financial Crisis: Lessons for European Integration,"
CASE Network Studies and Analyses
0384, CASE-Center for Social and Economic Research.
- Dabrowski, Marek, 2010. "The global financial crisis: Lessons for European integration," Economic Systems, Elsevier, vol. 34(1), pages 38-54, March.
- Uhde, André & Heimeshoff, Ulrich, 2009.
"Consolidation in banking and financial stability in Europe: empirical evidence,"
FAU Discussion Papers in Economics
02/2009, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
- Uhde, André & Heimeshoff, Ulrich, 2009. "Consolidation in banking and financial stability in Europe: Empirical evidence," Journal of Banking & Finance, Elsevier, vol. 33(7), pages 1299-1311, July.
- Moshirian, Fariborz, 2011. "The global financial crisis and the evolution of markets, institutions and regulation," Journal of Banking & Finance, Elsevier, vol. 35(3), pages 502-511, March.
- Cukierman, Alex, 2011.
"Reflections on the crisis and on its lessons for regulatory reform and for central bank policies,"
Journal of Financial Stability,
Elsevier, vol. 7(1), pages 26-37, January.
- Alex Cukierman, 2011. "Reflections on the Crisis and on its Lessons for Regulatory Reforms and for Central Bank Policies," Chapters, in: Handbook of Central Banking, Financial Regulation and Supervision, chapter 3 Edward Elgar Publishing.
- Mathieu Plane & Georges Pujals, 2009. "Les banques dans la crise," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(3), pages 179-219.
- Eisenbeis, Robert A. & Kaufman, George G., 2008. "Cross-border banking and financial stability in the EU," Journal of Financial Stability, Elsevier, vol. 4(3), pages 168-204, September.
When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-00758892. 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: (CCSD)
If references are entirely missing, you can add them using this form.