Forget ERM, now SSM and AQR will save the EUR

The SSM empowers the ECB to carry out banking supervision in the eurozone

There are three reasons why, if done correctly, the AQR can be a potential game-changer, putting the eurozone crisis behind us.
Philipp Hildebrand, Financial Times blog, September 20, 2013

The Single Supervisory Mechanism, approved last week by the European Parliament, presents an , Europe’s politicians must support him with a credible and binding route to capital-raising for those eurozone banks that are viable but remain undercapitalised.

The SSM, which empowers the ECB to carry out banking supervision in the eurozone, is not some arcane piece of financial market infrastructure. Before taking banks under its supervision, the ECB will – in tandem with stress tests that the European Banking Authority is undertaking – conduct an asset quality review of eurozone banks.

There are three reasons why, if done correctly, the AQR can be a potential game-changer, putting the eurozone crisis behind us.

Full text


Commission proposal for a Single Resolution Mechanism (SRM)

The Commission proposed a Single Resolution Mechanism for the Banking Union. The Single Resolution Mechanism complements the Single Supervisory Mechanism which was proposed by the Commission in September 2012. It is set to centralise key competences and resources for managing the failure of any bank in the Euro Area and in other Member States participating in the Banking Union.

Full text

Kommentarer

Populära inlägg i den här bloggen

Det svänger fort på räntemarknaden

Fjolåret blev strålande för flera av de största fondbolagen

Börsen i Stockholm och New York 4-5 augusti 2024