The crisis has shown the need to strengthen supervision on systemic risk and on large complex financial institutions.The de Larosière Report and EU Commission indications allow to strengthen the architecture of financial regulation and to accelerate convergence. Some important aspects,...

Contents: 1. Jürgen von Hagen, Jean Pisani-Ferry - Forum Economique Franco-Allemand /Deutsch-Französisches Wirtschaftspolitisches Forum ...1 -- 2. Karel Lannoo - Financial Supervision in EMU ...3 -- 3. Charles Wyplosz - Economic Policy Coordination in EMU: Strategies and Institutions...36 --...

The Banking Euro Area Stress Test (BEAST) is a large scale semi-structural model developed to assess the resilience of the euro area banking system from a macroprudential perspective. The model combines the dynamics of a high number of euro area banks with that of the euro area economies. It...

This paper presents an approach to a macroprudential stress test for the euro area banking system, comprising the 91 largest euro area credit institutions across 19 countries. The approach involves modelling banks'reactions to changing economic conditions. It also examines the effects of adverse...

In early 2012, the Spanish state came under strong market pressure due to its engagement in round after round of large-scale bank bailouts. The country's joint sovereign-bank crisis shed new light on the nature of the euro area's crisis. European decision-makers were forced to openly recognize...