ECEFIL Working Paper Series

 


Minimum Requirement for Own Funds and Eligible Liabilities (MREL):

A comprehensive analysis of the new prudential requirement for credit institutions

Working Paper Series No 2016/16 -updated-
PhD Candidate Nikos G. Maragopoulos


Abstract

The global financial crisis of 2007-2009 triggered a political initiative for a radical reform of the EU bank safety net aiming to enhance financial stability. The establishment of the Minimum Requirement for own funds and Eligible Liabilities (MREL) is one of the new core elements of the Union legal framework seeking to ensure that credit institutions have loss absorbing capacity sufficient to achieve their orderly resolution in case they become unviable. The present working paper, structured in four (4) sections, analyses the components of the new prudential requirement, as well as its potential impact on the EU banking system.

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ECEFIL WP No 2016/16 -updated-
Αρχείο PDF: 497 Kb



Financial Inclusion:

An overview of its various dimensions and the initiatives to enhance its current level

Working Paper Series No 2016/15
Professor Christos Vl. Gortsos
Abstract


The present working paper provides an introduction to the topic of financial inclusion (and exclusion) in five Sections:

(i) The main concepts and characteristics as well as some statistical data are set out in Section 1.

(ii) Section 2, on the policy aspects related to financial inclusion, deals with the interaction of financial inclusion with monetary policy, financial stability and anti-money laundering/terrorist financing preventive measures.

(iii) In Section 3 the correlation between financial literacy and financial inclusion is analysed.

(iv) The case for coordinated efforts to enhance financial inclusion at international, EU and national level is presented in Section 4.

(v) Finally, Section 5 presents briefly the link between technology and financial inclusion.

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ECEFIL WP 2016/15
Αρχείο PDF: 298 Kb



The ‘Comitology procedure’ under the European Parliament and Council Regulation (EU) No 182/2011 and its importance for EU banking law

Working Paper Series No 2016/14
Professor Christos Vl. Gortsos
Abstract

The present working paper provides an analysis of Regulation (EU) No 182/2011, of the European Parliament and of the Council “laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers”, which repealed Council Decision 1999/468/EC of 28 June 1999, as in force after its amendment by Council Decision 2006/512/EC of 17 July 2006. It is structured in four Sections:

(i) Section 1 examines the Comitology procedures within the system of law-making under the TFEU.

(ii) A closer look into the general aspects of Regulation (EU) No 182/2011 and the ‘Comitology Committees’ provided therein is the subject of Section 2.

(iii) In Section 3, the two main Comitology procedures laid down by the Regulation (the examination and the advisory procedures) are analysed.

(iv) Finally, Section 4 presents the other provisions of the Regulation (namely those on immediately applicable implementing acts and on controls by the European Parliament and the Council, the transitional provisions and arrangements, as well as the review clause).

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ECEFIL WP 2016/14
Αρχείο PDF: 308 Kb


The European Stability Mechanism Direct Recapitalisation Instrument:

An element for a complete European Banking Union

Working Paper Series No 2015/13
PhD Candidate Dimitris Vovolinis

Abstract

The European Stability Mechanism (‘ESM’) is a permanent crisis resolution mechanism for the countries of the euro area, which started operating in 8 October 2012. It is an important component of the comprehensive EU strategy designed to safeguard financial stability within the euro area. To that end, it issues debt instruments in order to finance loans and other forms of financial assistance to euro area Member States facing adverse financial conditions.

The present working paper, structured in three (3) sections, explores the role of the Direct Recapitalisation Instrument of the ESM within the context of the European Banking Union. Section A provides an overall examination of the ESM, and Section B deals with the provisions on the key elements of the Guideline pertaining to the Direct Recapitalisation Instrument and its integration within the institutional framework of the European Banking Union. Section C contains some concluding remarks.

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ECEFIL WP 2015/13
Αρχείο PDF: 554 Kb

 



Macro-prudential tasks in the framework of the Single Supervisory Mechanism (SSM):

an analysis of Article 5 of the SSM Regulation

Working Paper Series No 2015/12

Professor Christos Vl. Gortsos

Abstract

The aim of this paper is to provide an analysis of the macro-prudential tasks assigned to the ECB within the context of the ‘Single Supervisory Mechanism’, which is a major building block of the European Banking Union. It is structured in two (2) sections. Section 1 provides a general overview of the specific supervisory tasks conferred upon the ECB in relation to credit institutions and other supervised entities incorporated in participating Member States, as well as those concerning branches in participating Member States by credit institutions incorporated in non-participating Member States. Section 2 outlines, in particular, the specific macro-prudential tasks conferred upon the ECB under the provisions laid down in Article 5 of the Council Regulation (EU) No 1024/2013, which constitutes the main legal source of the ‘Single Supervisory Mechanism’ (known as the ‘SSM Regulation’).

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ECEFIL WP 2015/12
Αρχείο PDF: 175 Kb


The power of the ECB to impose administrative penalties as a supervisory authority:

an analysis of Article 18 of the SSM Regulation

Working Paper Series No 2015/11
Professor Christos Vl. Gortsos

Abstract

The aim of this paper is to provide an analysis of the power of the ECB to impose administrative penalties as a supervisory authority within the context of the ‘Single Supervisory Mechanism’, which is a major building block of the European Banking Union. It is structured in three (3) sections. Section 1 provides a general overview of the specific supervisory tasks conferred upon the ECB in relation to credit institutions and other supervised entities incorporated in participating Member States, as well as its investigatory and specific supervisory powers towards the achievement of the aim of these tasks. Section 2 outlines, in particular, the legal framework pertaining to the ECB’s sanction powers as a supervisory authority in case of breaches of regulatory requirements under EU banking law, as well as those under its own legal acts (Regulations and supervisory Decisions), and Section 3 contains some concluding remarks.

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ECEFIL WP 2015/11
Αρχείο PDF: 260 Kb

 



The New EU Directive (2014/49/EU) on Deposit Guarantee Schemes

ECEFIL Working Paper Series No 2014/10

Professor Christos Vl. Gortsos
ECEFIL Working Paper Series No 2014/10 has been replaced by the book of Prof. Gortsos:

"The new EU Directive (2014/49/EU) on deposit guarantee schemes: an element of the European Banking Union"

 


MOCOMILA Report (April 2014)

European Banking Union

Working Paper Series No 2014/9

Rosa M. Lastra, Bernd Krauskopf, Christos Gortsos, and Rene Smits

Abstract

This paper is part of the Report of the Monetary Committee on the International Law Association (MOCOMILA) presented at the bi-annual meeting of the International Law Association (ILA), which took place on Aprtil 7th, 2014, in Washington DC, USA. MOCOMILA is dedicated to the study of legal aspects of money, payments, currency and financial stability.

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ECEFIL WP 2014/9
Αρχείο PDF: 198 Kb

 



The "Single Supervisory Mechanism":

A Major Building Block towards a European Banking Union (The Full Europeanisation of the 'Bank Safety Net')

Working Paper Series No 2013/8 -updated-

Professor Christos Vl. Gortsos

Abstract

The aim of this paper is to provide an analysis of the main provisions of the two European Regulations on the creation of the 'single supervisory mechanism', which is a major building block of the European Banking Union. It is structured as follows:

Section A provides a historical overview of the issues at hand.
In section B, the main elements of the proposed institutional framework are presented.
Section C discusses, in particular, the specific tasks conferred on the European Central Bank and their discharge within the framework of the 'single supervisory mechanism'.
The provisions of the Council Regulation on the investigatory and specific supervisory powers of the ECB are outlined in Section D.
Section E provides an overview of the organisational principles, with an emphasis on the Supervisory Board.
Concluding remarks are presented in Section F
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ECEFIL WP No 2013/8
Αρχείο PDF: 493 Kb

 



The Application of the Unfair Commercial Practices Directive in the field of European Financial Law

Working Paper Series No 2013/7

Professor Christos Vl. Gortsos

Abstract

The process of financial integration has been put forward in the European Union mainly during the last three decades, in stages, but at a gradually intensified pace. This process, the starting point of which was a complete fragmentation of Member States’ financial systems, is constantly evolving with a view to shaping/creating/setting up a single financial area within the EU’s common market. Under this scope, the present paper analyses the application of the unfair commercial practices directive in the field of European financial law.

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ECEFIL WP No 2013/7
Αρχείο PDF: 299 Kb


Towards a "European banking Union":

the European Commission's proposals on the creation of a 'single supervisory mechanism' in the banking sector

Working Paper Series No 2012/6

Professor Christos Vl. Gortsos

Abstract

The launch on 1 January 1999 of the Economic and Monetary Union within the European Union did not bring about any changes to the regime on the authorisation and micro-prudential supervision of credit institutions incorporated in euro area member states. The academic debate on the creation of supranational supervisory authorities for the European financial system can be tracked back to mid-2000s. On political level, this prospect was essentially put forward, for the first time, in 2009, and only recently, at the 29 June 2012 Euro Area Summit, the euro area Heads of State or Government asked the European Commission to present specific legislative proposals on the establishment of a single supervisory mechanism over credit institutions, in the context of a wider political initiative on the creation of a ‘European Banking Union’. The subject of this paper is to provide a systematic overview of the main provisions of the two Regulation proposals tabled by the Commission on 12 September 2012.

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ECEFIL WP No 2012/6
Αρχείο PDF: 341 Kb

 



Current Developments in European Banking Law

Working Paper Series No 2012/5

Professor Christos Vl. Gortsos
Abstract

The collapse of financial markets in autumn 2008 and the credit crunch that followed can be attributed to multiple, often inter-related, causes, as identified, among others, in the "de Larosière Report," published on 25 February 2009, and in particular to the accumulation of excessive risk in the financial system. The financial crisis prompted a broad EU and international effort to develop effective policies to tackle the underlying problems. In fact, almost the entire existing banking regulation is being revised as a response to the recent financial crisis. The objective of this report is to examine the amendments to take place in European banking regulation.

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ECEFIL WP 2012/5
Αρχείο PDF: 196 Kb

 



Containing the Sovereign Debt Crisis: European and Greek Responses

Working Paper Series No 2012/4

Professor Constantine Stephanou and Professor Christos Vl. Gortsos

Abstract

The EU treaties and, specifically, the Treaty on the Functioning of the European Union (TFEU) embody no-bailout provisions which aim at deterring both sovereign borrowers and private creditors from irresponsible behaviour. The current sovereign debt crisis has demonstrated the limits of the system. The fall of interest rates expected to occur in high interest-rate countries after the establishment of the Eurozone, rather than benefiting these countries, led to irresponsible borrowing. The responses of the Eurozone to the sovereign debt crisis have been slow, yet, under continuous market pressure, it established sophisticated mechanisms for bailing-out members which are denied market access and for recapitalising banks exposed to bad debt. These mechanisms are examined in the present contributions, with special reference to the Greek case.

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ECEFIL WP No 2012/4
Αρχείο PDF: 595 Kb

 



“Basel III”: The reform of the existing regulatory framework of the Basel Committee on Banking Supervision for strengthening the stability of the international banking system


Working Paper Series No 2011/3

Professor Christos Vl. Gortsos

Abstract

“Basel III” regulatory framework is comprised by two reports. These reports are the result of extensive consultations that have taken place since 2008, namely in the middle of the recent (2007-2009) international financial crisis. Their provisions lay down a new international regulatory framework for international banks, by reforming the existing one, in order to strengthen the stability of the banking system.

The present paper, structured in three sections, explores the regulatory framework introduced by these reports. Section A analyses the sources of the new regulatory framework and the rationale for reform. Section B provides an overview of the provisions of Basel III, and Section C contains some concluding remarks.

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ECEFIL WP No 2011/3
Αρχείο PDF: 265 Kb

 



Reviewing the Administration of Domestic Regulation in WTO and Investment Protection Law:

The International Minimum Standard of Treatment of Aliens as “One Standard to Rule Them All”?

Working Paper Series No 2011/2

Dr. Anastasios Gourgourinis

Abstract

This paper examines equitable treatment standards prescribed by World Trade Organization (WTO) agreements and international investment agreements (IIAs), and argues that the customary minimum standard of treatment of aliens has permeated both specialized fields of international economic law, being their common normative core regarding the administration of domestic regulation vis-à-vis both foreign traders and investors. Ergo, it is demonstrated how the same domestic regulatory measure, affecting foreign traders/investors, is indeed capable of giving equally rise to successful claims before both WTO panels and investment arbitration tribunals.

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ECEFIL WP No 2001/2
Αρχείο PDF: 387 Kb


 

The European Banking Authority within the European System of Financial Supervision


Working Paper Series No 2011/1

Professor Christos Vl. Gortsos

Abstract

The European Banking Authority (“EBA”) is a part of the newly-established European System of Financial Supervision (“ESFS”), which started operating on January 1, 2011. The ESFS is the result of the legislative adoption of the proposals of the “de Larosière Report” of February 2009 and its legal basis are four Regulations of the European Parliament and of the Council and one Regulation of the Council.

The present paper, structured in three sections, explores the role of EBA within the ESFS. Section A provides an overall examination of the ESFS, while Section B deals with the legal status and organs, the scope of action, and the tasks and powers of EBA, as well as its integration within the European Union’s institutional framework. Section C contains some concluding remarks.

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ECEFIL WP No 2011/1
Αρχείο PDF: 495 Kb