How demanding and consistent is the 2018 stress test design in comparison to previous exercises?

Bank regulators have the discretion to discipline banks by executing enforcement actions to ensure that banks correct deficiencies regarding safe and sound banking principles. We highlight the trade-offs regarding the ex
Bank regulators have the discretion to discipline banks by executing enforcement actions to ensure that banks correct deficiencies regarding safe and sound banking principles. We highlight the trade-offs regarding the execution of enforcement actions for financial stability. Following this we provide an overview of the differences in the legal framework governing supervisors’ execution of enforcement actions in the Banking Union and the United States. After discussing work on the effect of enforcement action on bank behaviour and the real economy, we present data on the evolution of enforcement actions and monetary penalties by U.S. regulators. We conclude by noting the importance of supervisors to levy efficient monetary penalties and stressing that a division of competences among different regulators should not lead to a loss of efficiency regarding the execution of enforcement actions.
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Metadaten
Author:Rainer Haselmann, Mark Wahrenburg
URN:urn:nbn:de:hebis:30:3-472313
URL:https://safe-frankfurt.de/de/policy-center/publikationen/detailsview/publicationname/how-demanding-and-consistent-is-the-2018-stress-test-design-in-comparison-to-previous-exercises-1.html
URL:http://www.europarl.europa.eu/RegData/etudes/IDAN/2018/614512/IPOL_IDA(2018)614512_EN.pdf
Parent Title (English):SAFE white paper ; No. 54
Series (Serial Number):SAFE white paper series (54)
Publisher:SAFE
Place of publication:Frankfurt am Main
Document Type:Working Paper
Language:English
Year of Completion:2018
Year of first Publication:2018
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2018/08/15
Tag:Banking union; European banks; stress test
Pagenumber:26
Note:
This paper was provided at the request of the Committee on Economic and Monetary Affairs of the European Parliament and commissioned and drafted under the responsibility of the Economic Governance Support Unit (EGOV) of the European Parliament. It was originally published on the European Parliament’s webpage:www.europarl.europa.eu/RegData/etudes/IDAN/2018/614512/IPOL_IDA(2018)614512_EN.pdf 
Institutes:Wirtschaftswissenschaften
House of Finance (HoF)
Center for Financial Studies (CFS)
Sustainable Architecture for Finance in Europe (SAFE)
Dewey Decimal Classification:330 Wirtschaft
Sammlungen:Universitätspublikationen
Licence (German):License Logo Veröffentlichungsvertrag für Publikationen

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