Banking Union’s impact on financial stability – holistic approach

Prudential supervision of credit institutions in the European Union has for a long time been the responsibility of national bodies, even though this did not match the international character of the activities of many supervised banks. After the establishment of the banking union’s Single Supervisory...

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Autor principal: Zielińska-Lont, Klaudia
Formato: Online
Lenguaje:inglés
Publicado: Wydawnictwo Uniwersytetu Łódzkiego 2025
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Acceso en línea:ONIX_20250307_9788382207453_547
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author Zielińska-Lont, Klaudia
author_browse Zielińska-Lont, Klaudia
author_facet Zielińska-Lont, Klaudia
author_sort Zielińska-Lont, Klaudia
collection Directory of Open Access Books
description Prudential supervision of credit institutions in the European Union has for a long time been the responsibility of national bodies, even though this did not match the international character of the activities of many supervised banks. After the establishment of the banking union’s Single Supervisory Mechanism this has changed particularly for systemically important credit institutions, that now fall under the direct, coordinated supervision under the auspice of the European Central Bank. There was a great deal of speculation around what changes the banking union would bring to the financial sector in Europe, yet the net impact of the Single Supervisory Mechanism on financial stability and competitive position of the supervised credit institutions remains largely unknown. This monograph presents a holistic analysis of the impact that the reform of the EU’s financial safety net had on the banking sector. To make such evaluation possible, a dedicated synthetic indicator was designed to quantify the net impact of harmonized prudential supervision on the stability of credit institutions. The results signal that the establishment of the Single Supervisory Mechanism was a success and that the proposed synthetic indicator can serve as an early warning tool for authorities tasked with safeguarding financial stability.
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spelling doab-20.500.12854ir-1543672025-03-07T12:57:04Z Banking Union’s impact on financial stability – holistic approach Zielińska-Lont, Klaudia financial supervision financial stability Banking Union European Central Bank Single Supervisory Mechanism Prudential supervision of credit institutions in the European Union has for a long time been the responsibility of national bodies, even though this did not match the international character of the activities of many supervised banks. After the establishment of the banking union’s Single Supervisory Mechanism this has changed particularly for systemically important credit institutions, that now fall under the direct, coordinated supervision under the auspice of the European Central Bank. There was a great deal of speculation around what changes the banking union would bring to the financial sector in Europe, yet the net impact of the Single Supervisory Mechanism on financial stability and competitive position of the supervised credit institutions remains largely unknown. This monograph presents a holistic analysis of the impact that the reform of the EU’s financial safety net had on the banking sector. To make such evaluation possible, a dedicated synthetic indicator was designed to quantify the net impact of harmonized prudential supervision on the stability of credit institutions. The results signal that the establishment of the Single Supervisory Mechanism was a success and that the proposed synthetic indicator can serve as an early warning tool for authorities tasked with safeguarding financial stability. 2025-03-07T12:57:02Z 2025-03-07T12:57:02Z 2022 book ONIX_20250307_9788382207453_547 9788382207453 https://directory.doabooks.org/handle/20.500.12854/154367 eng Finance image/jpeg Attribution-NonCommercial-NoDerivatives 4.0 International https://www.press.uni.lodz.pl/index.php/wul/catalog/book/1167 Wydawnictwo Uniwersytetu Łódzkiego electronic 10.18778/8220-745-3 10.18778/8220-745-3 83bfe9c9-323d-4283-b087-d859fd9af314 9788382207453 electronic open access
spellingShingle financial supervision
financial stability
Banking Union
European Central Bank
Single Supervisory Mechanism
Zielińska-Lont, Klaudia
Banking Union’s impact on financial stability – holistic approach
title Banking Union’s impact on financial stability – holistic approach
title_full Banking Union’s impact on financial stability – holistic approach
title_fullStr Banking Union’s impact on financial stability – holistic approach
title_full_unstemmed Banking Union’s impact on financial stability – holistic approach
title_short Banking Union’s impact on financial stability – holistic approach
title_sort banking union s impact on financial stability holistic approach
topic financial supervision
financial stability
Banking Union
European Central Bank
Single Supervisory Mechanism
topic_facet financial supervision
financial stability
Banking Union
European Central Bank
Single Supervisory Mechanism
url ONIX_20250307_9788382207453_547
work_keys_str_mv AT zielinskalontklaudia bankingunionsimpactonfinancialstabilityholisticapproach