The effectiveness of macro-prudential policies to mitigate credit cycles and reduce capital flow volatility is at the center of policy debates. In this chapter, we investigate the factors which influence the performance of macro-prudential tools by focusing on institutions, financial structure,...

The establishment of the banking union was a crucial step for European integration and for the Economic and Monetary Union. Together with stronger capital and liquidity requirements under the European single rulebook, the introduction of the Single Supervisory Mechanism and the Single Resolution...

This chapter argues that, since the 1980s, moral hazard has encouraged excessive indebtedness and contributed to greater leniency from regulators and financial gatekeepers towards systemic banks. Examining the rise of the “too big to fail” (TBTF) banking behemoths, we question how moral...