The SDN elaborates the case for, and the design of, a banking union for the euro area. It discusses the benefits and costs of a banking union, presents a steady state view of the banking union, elaborates difficult transition issues, and briefly discusses broader EU issues. As such, it assesses...

Regulatory forbearance is a controversial strategy for dealing with weak banks. We analyze forbearance regarding the disclosure of a bank’s financial difficulties, using a case study of the financial crisis of the mortgage bank AHBR during the years 2001 to 2005. AHBR was one of the largest...

This Technical Note analyzes crisis preparedness and management framework in Austria. The global crisis revealed weaknesses in Austria’s financial stability policy framework. Austria needs to put in place a special bank resolution regime to resolve problem banks in a manner that does not...