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Delay determinants of European Banking Union implementation

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  • Koetter, Michael
  • Krause, Thomas
  • Tonzer, Lena

Abstract

To safeguard financial stability and harmonise regulation, the European Commission substantially reformed banking supervision, resolution, and deposit insurance via EU directives. But most countries delay the transposition of these directives. We ask if transposition delays result from strategic considerations of governments conditional on the state of their financial, regulatory, and political systems? Supervisors might try to protect national banking systems and local politicians maybe reluctant to surrender national sovereignty to deal with failed banks. Alternatively, intricate financial regulation might require more implementation time in large and complex financial and political systems. We therefore collect data on the transposition delays of the three Banking Union directives and investigate observed delay variation across member states. Our correlation analyses suggest that existing regulatory and institutional frameworks, rather than banking market structure or political factors, matter for transposition delays.

Suggested Citation

  • Koetter, Michael & Krause, Thomas & Tonzer, Lena, 2017. "Delay determinants of European Banking Union implementation," IWH Discussion Papers 24/2017, Halle Institute for Economic Research (IWH).
  • Handle: RePEc:zbw:iwhdps:242017
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    Cited by:

    1. Koetter, Michael & Krause, Thomas & Sfrappini, Eleonora & Tonzer, Lena, 2021. "Staggered completion of the European Banking Union: Transposition dates of the BRRD. Data record description," IWH Technical Reports 1/2021, Halle Institute for Economic Research (IWH).
    2. Bremus, Franziska & Schmidt, Kirsten & Tonzer, Lena, 2020. "Interactions between bank levies and corporate taxes: How is bank leverage affected?," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics.
    3. Franziska Bremus & Tatsiana Kliatskova, 2018. "Legal Harmonization, Institutional Quality, and Countries' External Positions: A Sectoral Analysis," Discussion Papers of DIW Berlin 1768, DIW Berlin, German Institute for Economic Research.
    4. Bremus, Franziska & Schmidt, Kirsten & Tonzer, Lena, 2018. "Interactions between regulatory and corporate taxes: How is bank leverage affected?," IWH Discussion Papers 16/2018, Halle Institute for Economic Research (IWH).
    5. Bremus, Franziska & Kliatskova, Tatsiana, 2020. "Legal harmonization, institutional quality, and countries’ external positions: A sectoral analysis," Journal of International Money and Finance, Elsevier, vol. 107(C).
    6. Koetter, Michael & Krause, Thomas & Sfrappini, Eleonora & Tonzer, Lena, 2021. "Completing the European Banking Union: Capital cost consequences for credit providers and corporate borrowers," IWH Discussion Papers 4/2021, Halle Institute for Economic Research (IWH).
    7. Bremus, Franziska & Kliatskova, Tatsiana, 2020. "Legal harmonization, institutional quality, and countries’ external positions: A sectoral analysis," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics.

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    More about this item

    Keywords

    single rulebook; political economy; transposition delays;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • F30 - International Economics - - International Finance - - - General
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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