{"id":1569,"date":"2019-11-21T14:05:30","date_gmt":"2019-11-21T12:05:30","guid":{"rendered":"http:\/\/www.liberalglobe.com\/?p=1569"},"modified":"2019-11-21T14:05:36","modified_gmt":"2019-11-21T12:05:36","slug":"the-today-image-of-the-european-banking-system-following-the-financial-crisis-of-2008","status":"publish","type":"post","link":"https:\/\/www.liberalglobe.com\/?p=1569","title":{"rendered":"The today image of the European banking system following the financial crisis of 2008"},"content":{"rendered":"\n

The overall picture of the European banking system after eleven years of\nthe financial crisis of 2008 is much better but it creates scepticism. The EU after the\nfinancial crisis of 2008 took courageous decisions to rescue Euro-area member\nstates while also setting the roadmap for consolidating the European banking\nsystem.<\/p>\n\n\n\n

The Single Supervisory Mechanism (SSM), the Single Resolution Board (SRB),\nis complementary and fully effective in giving new capabilities to the European\nbanking system.<\/p>\n\n\n\n

by Thanos S. Chonthrogiannis<\/strong><\/p>\n\n\n\n

\u00a9The law of intellectual property is prohibited in any way unlawful use\/appropriation of this article, with heavy civil and criminal penalties for the infringer.<\/em><\/p>\n\n\n\n

\"\"
The flag of EU<\/strong>
Public Domain<\/a><\/figcaption><\/figure><\/div>\n\n\n\n

Reasons obstruction the consolidation of the European banking system<\/strong><\/strong><\/p>\n\n\n\n

The only observed delay concerns the European Deposit Insurance\nScheme-(EDIS). The high percentage of non-performing loans (NPLs) in the\nbanking system of Southern euro area member countries such as Greece, Cyprus\nand Italy do not allow further promotion and progress of the specific policy\nthat concerns this important part of European banking consolidation.<\/p>\n\n\n\n

Germany has insisted on its fixed position since 2015 that there should be\na quantification of risk in government bonds held in their portfolios by banks\nindirectly photographing the bonds of the Governments of the countries of\nItaly, Greece and Cyprus respectively, considering that Governmental bonds\nshould cease to be considered as risk-only investments.<\/p>\n\n\n\n

On the other side is Italy, Greece and Cyprus that disagree with Germany’s\nperspective on this issue because they know that in such a case the systemic\nbanks of these countries would have to increase the own funds rates that they\nretain based on Basile convention causing the effect of further increasing\ntheir systemic banks operating costs.<\/p>\n\n\n\n

Without the European deposit guarantee, the system is not fully stabilised\nand cooperation between European banks is not facilitated. In the current era,\neurozone banks are faced with structural profitability problems, which will be\nsteadily deteriorating due to the prevailing policy of negative interest rates\napplied by the ECB.<\/p>\n\n\n\n

For the reader who wants to be informed in depth and in detail how the\nEuropean deposit guarantee facility can be used for the development trajectory\nof the euro area economy should read the analysis titled “How  the \nGuaranteed  Deposits  in \nthe  EU  can \nhelp  to  develop \nthe  Eurozone”.<\/p>\n\n\n\n

New challenges facing the eurozone banking system<\/strong><\/strong><\/p>\n\n\n\n

The new challenges to come faced the European banks are not a few or easy. Such challenges are<\/p>\n\n\n\n

1.<\/strong> The Brexit and its handling and given that the City of London will be lost from the EU’s bays-one of the most important financial centers worldwide,<\/p>\n\n\n\n

2.<\/strong> The application of the Basel IV rules, which will require a mandatory increase in the percentage of funds that retained by banks in the form of own funds,<\/p>\n\n\n\n

3.<\/strong> The limitation of “Shadow banking” with very large funds to operate outside the framework of strict rules applicable to banks.<\/p>\n\n\n\n

The conclusion that we are finding is that Europe’s banking system clearly\nhas an improved picture compared to the previous ten years, but remained\nunresolved significant structural weaknesses, leading it to tackling new future\nchallenges that either these new challenges will become the cause to enlarge\nthese structural weaknesses or lead to new accelerated implementation of past\nand new policies to successfully tackle all these challenges.<\/p>\n","protected":false},"excerpt":{"rendered":"

The overall picture of the European banking system after eleven years of the financial crisis of 2008 is much better but it creates scepticism….<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[859,5],"tags":[1267,1266,1263,1268,1265,1264],"class_list":["post-1569","post","type-post","status-publish","format-standard","hentry","category-economics","category-economic","tag-basel-iv","tag-edis","tag-european-banking-system","tag-npls","tag-srb","tag-ssm"],"_links":{"self":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/1569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1569"}],"version-history":[{"count":1,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/1569\/revisions"}],"predecessor-version":[{"id":1570,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/1569\/revisions\/1570"}],"wp:attachment":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}