Unravelling Economic Solidarity: A Systemic View on Risk-Sharing in the European Banking Sector

Financial Stability Conference - FSC Research Workshop 2019, Financial Risk and Stability Network, Berlin, October 29, 2019

27 Pages Posted: 9 Dec 2019

See all articles by Yuri Biondi

Yuri Biondi

French National Center for Scientific Research (CNRS)

Cecilia del Barrio

University of Trento, School of International Studies, Students; European Banking Institute

Date Written: November 21, 2019

Abstract

The policy contribution aims to overcome the unfertile debate that opposes the notions of risk-sharing and risk reduction, by examining the concepts of economic solidarity and responsibility, with a particular focus on the Banking Union and some of its unresolved crisis management issues. The contribution adopts a money-centric view on banking, which highlights the interconnectedness between monetary policy design and the banking sector, arguing that both principles of solidarity and responsibility are interconnected and must, therefore, be included in the architecture of the EU’s financial system. The empirical review comparatively examines the EU and US cases in order to draw concrete lessons from them. The contribution concludes by briefly proposing the enhancement of a solidarity dimension in the Banking Union design.

Keywords: Economic Solidarity; Banking Union (BU); Crisis Management; Economic and Monetary Union (EMU)

JEL Classification: F33; K20

Suggested Citation

Biondi, Yuri and del Barrio, Cecilia, Unravelling Economic Solidarity: A Systemic View on Risk-Sharing in the European Banking Sector (November 21, 2019). Financial Stability Conference - FSC Research Workshop 2019, Financial Risk and Stability Network, Berlin, October 29, 2019 , Available at SSRN: https://ssrn.com/abstract=3491186 or http://dx.doi.org/10.2139/ssrn.3491186

Yuri Biondi

French National Center for Scientific Research (CNRS) ( email )

IRISSO - University Paris Dauphine PSL
Place Marechal Lattre Tassigny
75016 Paris
France

HOME PAGE: http://yuri.biondi.free.fr/

Cecilia Del Barrio (Contact Author)

University of Trento, School of International Studies, Students ( email )

via Verdi 8/10
Trento, 38122
Italy

European Banking Institute ( email )

Frankfurt
Germany

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