The system of banking supervision in Europe is undergoing substantial reforms. According to Stigler?s capture theory regulation often follows the preferences of producers. Therefore, the interests of the financial industry might be a major driving force for the ongoing supervisory reform debate....

The systemic risk potential in the European banking market has increased. Hence, the following questions emerge: Is there a need for a truly European supervisory framework? And, how should a potential European supervisor be organised? This paper evaluates the existing supervisory framework as...

In diesem Beitrag werden mögliche ordnungspolitische Konsequenzen der Finanzmarktkrise in Folge der Turbulenzen auf dem US-amerikanischen Hypothekenkreditmarkt diskutiert. Zunächst erläutern die Autoren theoretisch und empirisch die Phänomene der Bankenkrisen und der Ansteckung in einem...

The European Commission's approach to the supervision and restructuring of the EU banking system has numerous shortcomings. As an alternative, this article proposes a European Resolution Authority and a European Restructuring Fund for systemically important banks and the implementation of a levy...

We study a politician's choice for state or private control of banks. The choice trades of lobbying contributions against social welfare, weighted by political accountability.Politicians facing few constraints prefer state control to maximize their rents. As state banks are less efficient, at...

This paper examines common regulation as cause of interbank contagion. Studies based on the correlation of bank assets and the extent of interbank lending may underestimate the likelihood of contagion because they do not incorporate the fact that banks have a common regulator. In our model, the...

During the last decade or so a number of banking crises has occurred in both industrial and developing countries. Bank unsoundness is the focus of deep concerns for its possible interactions with macroeconomic instability. The potential size and severity of sovereign debt crises in integrated...