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MNI BRIEF: Call For EU To Strengthen Resolution After SVB

(MNI) Brussels

https://cepr.org/voxeu/columns/silicon-valley-bank-collapse-prudential-regulation-lessons-europe-and-worldEU authorities need to further improve the framework for bank resolution in light of the collapse of SVB bank, according to a paper in VoxEU CEPR authored by former ECB Chief Economist Peter Praet and other experts.

The EU should provide more information about the proportion of banks who meet the 8% requirement for bail-in-able securities, while avoiding providing any spur to deposit flight by temporarily suspending the requirement while institutions still below this threshold are given a publicly-announced timetable to meet it, the paper by Mathias Dewatripont, Praet and Andre Sapir argues.

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https://cepr.org/voxeu/columns/silicon-valley-bank-collapse-prudential-regulation-lessons-europe-and-worldEU authorities need to further improve the framework for bank resolution in light of the collapse of SVB bank, according to a paper in VoxEU CEPR authored by former ECB Chief Economist Peter Praet and other experts.

The EU should provide more information about the proportion of banks who meet the 8% requirement for bail-in-able securities, while avoiding providing any spur to deposit flight by temporarily suspending the requirement while institutions still below this threshold are given a publicly-announced timetable to meet it, the paper by Mathias Dewatripont, Praet and Andre Sapir argues.

Keep reading...Show less