Judicial Review and the Banking Resolution Regime

Judicial Review and the Banking Resolution Regime
Author: Luis Silva Morais
Publisher:
Total Pages:
Release: 2018
Genre:
ISBN:

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At the eve of the 2007 financial crisis, it was noticeable that the integration of Europe's financial sector was progressing at an uneven pace on at least two accounts. On the one hand, the banking industry displayed a greater degree of integration, certainly commensurate with its importance in the functioning of most of the Member States financial sectors, vis-à-vis the insurance sector and financial markets. On the other hand, financial integration had not been accompanied by the adoption of the necessary regulatory safeguards to curb down perverse incentives arising from the decoupling between increasing financial integration and national-bound regulation and supervision 5. The causes and effects of the 2007 financial crisis, as well as its economic and financial repercussions in the EU, are by now a widely versed and researched topic - and for that reason, one that we shall skip altogether - demanded swift action from the EU on several accounts.

Undermining Judicial Review in Bank Resolution

Undermining Judicial Review in Bank Resolution
Author: Silvia Savigni
Publisher:
Total Pages:
Release: 2018
Genre:
ISBN:

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The objectives of bank resolution and resolution tools may come into conflict with fundamental rights, such as the freedom to conduct a business, property rights, and the right to a fair trial. This paper investigates bank resolution and its impact on fundamental human-rights and explores the features of a balanced judicial review that guarantees the efficiency of the resolution proceedings while respecting the human-rights safeguards. In doing so, it analyses the fundamental-rights implications in resolution regimes in light of the safeguards enshrined in the European Convention of Human Rights (ECHR), the Treaty on the Functioning of the European Union (TFEU), and the Charter of the Fundamental Rights of the European Union (the Charter), as well as the case law of the European Court of Human Rights (ECtHR) and the Court of Justice of the European Union (CJEU). Given that the actions taken by resolution authorities can result in the infringement of the fundamental rights, ex-post judicial review of resolution schemes is necessary and should guarantee a comprehensive judicial control of resolution actions. To preserve the effectiveness of the resolution tools and to avoid potential destabilizing implications of the ex-post judicial review, the insolvency proceedings are often expedited, confidential, with no suspensive effects and with a limited right of appeal. However, having reviewed the bank insolvency cases involving the infringement of fundamental rights, we conjecture that given the untested nature and uncertain benefits of the bank resolution schemes and the fact that they are expected to only marginally contribute to financial stability, a move towards administrative proceedings for bank insolvency and making judicial review of the administrative proceedings toothless may be unwarranted. We take a more nuanced approach to bank resolution and propose that a blended approach in which only systemically important functions would be handled by an administrative resolution authority and the remainder of the functions would be handled by a bankruptcy court would be preferable. Our proposal is thoroughly aligned with the structural reforms of the banking system such as ring-fencing and subsidiarization, which could play a role in advancing this blended approach.

Research Handbook on Cross-Border Bank Resolution

Research Handbook on Cross-Border Bank Resolution
Author: Matthias Haentjens
Publisher: Edward Elgar Publishing
Total Pages: 448
Release: 2019
Genre: Law
ISBN: 1786435985

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Since 2008, many countries across the globe have witnessed the introduction of new recovery and resolution regimes for banks. Whereas much may have been achieved on regional levels, this has not been perfect, and many global challenges remain unsolved. The Research Handbook on Cross-Border Bank Resolution analyses the strengths and weaknesses of the current regulatory framework for cross-border bank crises with contributions from eminent experts from the US, EU, Japan and China. The topic is addressed from both economic, and legal perspectives, with a special section devoted to real-life cases.

Judicial Review in the European Banking Union

Judicial Review in the European Banking Union
Author: Chiara Zilioli
Publisher: Edward Elgar Publishing
Total Pages: 672
Release: 2021-02-09
Genre:
ISBN: 9781800373198

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This is the first book to offer a profound, practical analysis of the framework for the judicial and pre-judicial protection of rights under the supranational banking supervision and resolution powers in the European Banking Union (EBU). It is also unique in its in-depth commentary on the developing case law from the European Court of Justice in this new field of EU litigation. Key features include: - clarity on the procedural requirements for judicial review - a comprehensive commentary on the existing case law of EU courts in the field - insight and analysis from front-line practitioners, as well as expert scholars - a detailed and up-to-date examination of banking supervision and resolution in the EBU - discussion of the development of EBU law as a crucial area of EU law and its integration into the EU's legal order. This book is a must-read for practitioners in the field of banking law and regulation. In particular it will be the authoritative reference point for those working in European and national public institutions such as supervisory and resolution authorities, courts, central banks and ministries of finance, as well as those working in or advising private organisations concerned with the exercise of supervisory and resolution powers. The book will also be of significant interest to scholars and postgraduate students of EU financial and banking law and governance.

Resolving Bank Failures and Institutions: Is There a Link? Some Empirical Evidence

Resolving Bank Failures and Institutions: Is There a Link? Some Empirical Evidence
Author: Marlon Rawlins
Publisher: International Monetary Fund
Total Pages: 29
Release: 2021-08-06
Genre: Business & Economics
ISBN: 1513590839

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Policymakers across countries have been seeking to strengthen the institutional framework to control fiscal costs and feedback effects to the real economy generated by bank failures. On a cross-section of countries, we find evidence that suggests that bank supervisors’ intervention in bank failures may be positively associated with some aspects of the administrative and regulatory framework. Our results appear to hold also during times of financial instability. Finally, we find some evidence that the same institutional features may be associated with lower fiscal outlays during banking crises.

The Need for Special Resolution Regimes for Financial Institutions—The Case of the European Union

The Need for Special Resolution Regimes for Financial Institutions—The Case of the European Union
Author: Mr.Martin Cihak
Publisher: International Monetary Fund
Total Pages: 31
Release: 2009-09-01
Genre: Business & Economics
ISBN: 1451873476

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The global financial crisis has demonstrated weaknesses in resolution regimes for financial institutions around the globe, including in the European Union (EU). This paper considers the principles underlying resolution regimes for financial institutions, and draws out how a well-designed resolution regime can expand the toolset available for crisis management. Introducing, or in some cases expanding the scope, of these regimes is pressing to achieve more effective responses to ongoing financial sector weaknesses across the EU.

Judicial Review in the European Banking Union

Judicial Review in the European Banking Union
Author: Chiara Zilioli
Publisher: Edward Elgar Publishing
Total Pages: 672
Release: 2021-02-26
Genre: Law
ISBN: 1800373201

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This is the first book to offer a profound, practical analysis of the framework for the judicial and pre-judicial protection of rights under the supranational banking supervision and resolution powers in the European Banking Union (EBU). It is also unique in its in-depth commentary on the developing case law from the European Court of Justice in this new field of EU litigation.

An Overview of the Legal, Institutional, and Regulatory Framework for Bank Insolvency

An Overview of the Legal, Institutional, and Regulatory Framework for Bank Insolvency
Author: International Monetary Fund. Monetary and Capital Markets Department
Publisher: International Monetary Fund
Total Pages: 77
Release: 2009-04-17
Genre: Business & Economics
ISBN: 1498336051

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This study provides an overview of the legal, institutional, and regulatory framework that countries should put in place to address cases of bank insolvency. It is primarily intended to inform the work of the staffs of the International Monetary Fund (IMF) and World Bank, and to provide guidance to their member countries.

Bank Resolution

Bank Resolution
Author: Jens-Hinrich Binder
Publisher: Oxford University Press, USA
Total Pages: 0
Release: 2016
Genre: Law
ISBN: 9780198754411

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Responding to lessons learned during the global financial crisis, the EU Directive on the Recovery and Resolution of Banks and Securities Firms (the BRRD) has substantially changed the legal framework for insolvency management of financial services institutions across Europe. As the legislative process has been completed with the adoption of the BRRD, and of Regulation No 806/2014 establishing the Single Resolution Mechanism, this book offers a unique insight into the new European framework for the resolution of banks in distress. The chapters in this volume take stock of what has been achieved and present an insightful analysis of both the technical framework and its impact on banking institutions and their counterparties in representative forms of banking activities, including retail and wholesale depositors, counterparties to financial directives, and the providers of relevant parts of the market infrastructure. Special attention is given to the international coordination of resolution. The book's focus is on resolution and its impact on the relationships between banks, customers, other market participants and market infrastructure, including the preventative requirements on recovery and resolution planning under the BRRD. The chapters bring together a wide range of perspectives by scholars, practitioners from regulatory authorities and other parts of the financial safety net, as well as from private practice, from many jurisdictions, and both legal and economic backgrounds. Arranged broadly in line with the structure of the BRRD, the book is a highly useful reference for practitioners, policy-makers, and academics alike.

Cross-Border Bank Resolution - Recent Developments

Cross-Border Bank Resolution - Recent Developments
Author: International Monetary Fund
Publisher: International Monetary Fund
Total Pages: 41
Release: 2014-02-06
Genre: Business & Economics
ISBN: 1498343287

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Developing an effective framework for cross-border resolution is a key priority in international regulatory reform. Large bank failures during the global financial crisis brought home the lack of adequate tools for resolving “too-big-to-fail” institutions. In cross-border cases, misaligned incentives and lack of robust mechanisms for resolution and cross-border cooperation left some country authorities with little choice but to take unilateral actions, which contributed to the high fiscal costs of the crisis and resulted in disorderly resolution in some cases