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The Case for a European Banking Charter

  • Martin Cihák
  • Jörg Decressin
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    Most financial institutions in the European Union (EU) are still based in one country, but a number of large financial institutions (LCFI) have systemic cross-border exposures. The paper explains how, despite much progress, nationally-segmented supervisory frameworks and national accountability for financial stability hinder optimization across borders of banks' operations and efficient and effective LCFI supervision. A full-fledged EU-level prudential regime that operates along-side national regimes--a European Banking Charter (EBC)--could harness market forces to establish a level playing field for financial sector competition, while plugging some significant gaps in Europe's financial stability framework without concentrating excessive powers.

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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=21158
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    Paper provided by International Monetary Fund in its series IMF Working Papers with number 07/173.

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    Length: 34
    Date of creation: 01 Jul 2007
    Date of revision:
    Handle: RePEc:imf:imfwpa:07/173
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