Crisis Management and Resolution for a European Banking System

99 Pages Posted: 29 Mar 2010

See all articles by Wim Fonteyne

Wim Fonteyne

International Monetary Fund (IMF)

Wouter Bossu

International Monetary Fund (IMF)

Luis Cortavarria-Checkley

International Monetary Fund (IMF); Superintendency of Banks, Insurance Companies and Pension Funds of Peru; International Monetary Fund

Alessandro Giustiniani

International Monetary Fund (IMF) - Monetary and Financial Systems Department; Bank of Italy - Research Department

Alessandro Gullo

International Monetary Fund (IMF)

Daniel Hardy

International Monetary Fund (IMF)

Sean Kerr

affiliation not provided to SSRN

Date Written: March 2010

Abstract

This paper proposes an integrated crisis management and resolution framework for the EU's single banking market. It comprises a European Resolution Authority (ERA), armed with the mandate and the tools to deal cost-effectively with failing systemic cross-border banks, and is designed to address many fundamental operational and incentive problems. It also seeks to reduce moral hazard and better protect countries against the risk of twin fiscal-financial crises by detaching banks from government budgets. The ERA would be most effective if it were twinned or combined with a European Deposit Insurance and Resolution Fund.

Keywords: Bank reforms, Bank resolution, Bank supervision, Banking crisis, Banking systems, Economic integration, European Monetary System, Financial crisis, Financial stability, Global Financial Crisis 2008-2009, Risk management

Suggested Citation

Fonteyne, Wim and Bossu, Wouter and Cortavarria, Luis A and Giustiniani, Alessandro and Gullo, Alessandro and Hardy, Daniel and Kerr, Sean, Crisis Management and Resolution for a European Banking System (March 2010). IMF Working Papers, Vol. , pp. 1-99, 2010. Available at SSRN: https://ssrn.com/abstract=1578668

Wim Fonteyne

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Wouter Bossu

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Luis A Cortavarria

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Superintendency of Banks, Insurance Companies and Pension Funds of Peru ( email )

International Monetary Fund ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Alessandro Giustiniani

International Monetary Fund (IMF) - Monetary and Financial Systems Department ( email )

Washington, DC
United States

Bank of Italy - Research Department ( email )

Via Nazionale 91
00184 Roma
Italy

Alessandro Gullo

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Daniel Hardy

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Sean Kerr

affiliation not provided to SSRN

No Address Available

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