EDIS, NPLs, Sovereign Debt and Safe Assets

Andreas Dombret, Patrick S. Kenadjian, Andreas Dombret, Patrick S. Kenadjian

• Publisher: De Gruyter
• Year: 2020
• Topic: Law
• eBook ISBN:
  9783110683073
• Subtopic: Financial Law
• Index: Law

Why does the third leg of the European Banking Union, EDIS, remain mired in controversy? This book presents the views of senior representatives of the public and private sectors and academia on why EDIS is either necessary, counter-productive or even dangerous. No viewpoint has been excluded and the full range of issues involved is covered, including the impact on financial stability and on consolidation of the financial sector in Europe, progress on reducing NPLs, the feasibility of developing "safe bonds" and other, more practical solutions to the "doom loop" and the actual design of EDIS.

Table of contents

• Introduction
• Contents
• The Authors
• I. The Policy Round: The Arguments For and Against EDIS
• EDIS: Unblocking the Banking Union
• How Important is a European Deposit Insurance Scheme
• The EBA’s Emerging Proposals to Improve the EU Depositor Protection Framework
• A Common European Deposit Insurance System on the Path Towards a Steady-State Banking Union
• A Single Deposit Insurance Scheme as a Component of a Stable Banking Union?
• II. The Bankers’ Round: What EDIS Does For Us and Our Customers
• Completing Banking Union: Time to Meet the Challenges
• “EDIS Might Not Revolutionise European Banking – But it can Liberate Europe from Regulatory Fragmentation”
• EDIS: Groundhog Day or Back to the Future
• EDIS: Why the Diversity of the EU Banking System Is at Stake
• Completing banking union
• III. How and When Do We Solve the Problem, or is it Solving Itself?
• Non-Performing Loans in the Euro Area – Where do we Stand?
• EDIS, NPLs, Sovereign Debt and Safe Assets. NPLs are Not the Only Problem
• Advancing the European Financial Market. Further Reducing Risk in the EU and Simultaneously Strengthening the Financial Market
• Non-Performing Loans: Stumbling Block or Scapegoat? NPLs and how they stand between European Banks and better Deposit insurance
• IV. Sovereign Debt: Is this Really an Obstacle to EDIS and, if so, are Safe Assets the Solution?
• A Way to a Viable Level Playing Field
• Would European “Safe Assets” Be Risk Free?
• Creating a Euro Area Safe Asset without Mutualizing Risk (Much)
• The Regulation of Sovereign Exposures in the Context of Broader Euro Area Reforms
• What do Sovereign Debt and “Safe Assets” Have to do With EDIS?
• The Key to Completing the Banking Union: Sovereign Concentration Charges
• V. Structure of EDIS
• The Role of Deposit Insurance in Promoting Financial Stability and Protecting the Ordinary Saver’s Money
• Designing a European Deposit Insurance Scheme for Euro Area Banking Union
• A Look at the FDIC Through the Lens of Deposit Insurance
• Decoupling Risks: The Rationale for Improving the Regulatory Treatment of Sovereign Exposures and an Impact-Analysis of the Basel Committee Discussion Document
• Rethinking Europe’s Deposit Guarantee Scheme
• Position paper on the goals of the banking union