Report on financial stability.

At the Informal Ecofin of 11 September 1999 in Turku, ministers and governors agreed to ask the Economic and Financial Committee to check whether the existing regulatory and supervisory structures in the EU can safeguard financial stability, particularly in the context of a rapidly changing financial environment. For this purpose, an ad hoc working group, chaired by the Dutch Deputy Governor Henk Brouwer prepared this report on financial stability under the aegis of the EFC. The organisation of the report is as follows. Section II contains the main conclusions (assessment). The rest of the paper examines the impact of the major financial trends on the stability of the financial system in Europe (section III), as well as the arrangements in the EU aimed at safeguarding financial stability. These arrangements can be divided into two main groups: the first one covers regulations (section IV) and supervisory structures (section V), which are primarily directed at preventing financial instability. The second group of arrangements consists of various types of crisis management, such as liquidity support to individual institutions or to the market as a whole (section VI).efc, economic and financial committee, financial, stability

Vade mecum on the Stability and Growth Pact

This document is the third issue of the Vade mecum published for the first time in May 2013 with the aim of improving transparency of the way the Commission applies the rules of the Stability and Growth Pact (SGP). It presents the relevant procedures and methodologies designed for implementing the SGPEste documento es el tercer número del Vademécum publicado por primera vez en mayo de 2013 con el objetivo de mejorar la transparencia de la forma en que la Comisión aplica las normas del Pacto de Estabilidad y Crecimiento (PEC). Presenta los procedimientos y metodologías pertinentes para la aplicación del PEC

What makes a good ‘bad bank’? The Irish, Spanish and German experience

This paper examines the experience of three asset management companies (AMCs) or ʽbad banksʼ established in the euro area following the 2008 global financial crisis. Specifically, it studies NAMA, Sareb and FMS Wertmanagement (FMS). These AMCs were set up to purchase growing nonperforming loans on banks’ balance sheets with the aim of their eventual disposal. The study seeks to identify factors that support an AMC’s success. It also analyses the impact of the European regulatory framework, including the Eurostat rules, State-aid regulations and bank resolution rules, on the AMCs’ design. It also reflects on the way recent changes to EU bank resolution rules now limit the involvement of State aid in AMCs. The study finds that the type of assets transferred and the macroeconomic environment are crucially important for successful asset disposals. The paper also focuses on additional success factors, such as clean asset documentation, a solid valuation process, efficient asset servicing, a strong legal framework and skilled staff. Though challenges remain, the three AMCs have contributed to banking sector stabilisation as they have been undertaken alongside bank restructuring measures. The financial backing of the authorities, decisive in the cases analysed, has however come at a fiscal cost

Transparency is a Global Imperative

Developed Five-Point Plan to increase transparency within the global financial system