Harmonizing the EU Regulation in the Banking Union

Kudrna, Zdenek and Sonja Puntscher Riekmann (2018). Harmonizing national options and discretions in the EU banking regulation. Journal of Economic Policy Reform, 21(2), 144-158.

30 Pages Posted: 7 Oct 2019

See all articles by Zdenek Kudrna

Zdenek Kudrna

affiliation not provided to SSRN

Sonja Puntscher Riekmann

Austrian Academy of Sciences

Date Written: October 15, 2017

Abstract

The European Central Bank strives to harmonize over 160 national options and discretions (O&Ds) that contribute to the fragmentation of the banking union’s regulatory framework. National authorities seem prepared to accept it, despite previously insisting on the inclusion of all O&Ds into the EU legislation. We analyze a sample of O&D choices and their correspondence to cleavages pertinent to the political economy of EU banking. We find that the 11 post-communist member states use O&Ds more stringently to protect capital and liquidity in the local subsidiaries of foreign-own banks, which may complicate their potential opt-in to the banking union.

Keywords: EU; banking union; reforms

JEL Classification: G38

Suggested Citation

Kudrna, Zdenek and Riekmann, Sonja Puntscher, Harmonizing the EU Regulation in the Banking Union (October 15, 2017). Kudrna, Zdenek and Sonja Puntscher Riekmann (2018). Harmonizing national options and discretions in the EU banking regulation. Journal of Economic Policy Reform, 21(2), 144-158., Available at SSRN: https://ssrn.com/abstract=3459277 or http://dx.doi.org/10.2139/ssrn.3459277

Zdenek Kudrna (Contact Author)

affiliation not provided to SSRN ( email )

Sonja Puntscher Riekmann

Austrian Academy of Sciences ( email )

Institute for European Integration Research
A-1010 Wien, Osterreich
Austria

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