Financial Regulation and Supervision: Crisis as Catalyst for Institutional and Policy Reforms
(2025) EU Regulatory Responses to Crises: Adaptation or Transformation? — ISBN: [9780198913825], p. 37-62, published
Files
BauerschmidtQuagliaFinancialRegulationandSupervision-CrisisasCatalystforInstitutionalandPolicyReform2025.pdf
Closed Access - Adobe PDF
- 1.14 MB
Details
- Authors
Bauerschmidt, Jonathan 
- Abstract
- The European Union (EU) responded to the Great Financial Crisis in several ways. First, it established a European System of Financial Supervision, which comprises the European Systemic Risk Board and three sectoral European Supervisory Authorities (ESAs). Second, it created the banking union, with a view to breaking the vicious circle of dependence between banks and sovereigns. In the banking union, the competence for banking supervision and resolution were partly transferred to the supranational level. Third, it proposed the creation of the capital markets union, to unlock new sources of funding, be less reliant on banks, reduce financial market fragmentation, and increase cross-border capital flows. On the whole, the EU replaced many soft laws with hard laws and made greater use of regulations rather than directives. At the same time, the ESAs and the European Central Bank issued a considerable amount of soft law. While undertaking these post-crisis reforms, the EU had to deal with two main challenges: to reconcile the competing interests and different priorities of Member States, and to combine the depoliticization of certain financial issues with a sufficient level of accountability.
- Affiliations
Citations
Bauerschmidt, J., & Quaglia, L. (2025). Financial Regulation and Supervision: Crisis as Catalyst for Institutional and Policy Reforms. In edited by Diane Fromage, Adrienne Windhoff-Héritier, Paul Weismann (ed.), EU Regulatory Responses to Crises: Adaptation or Transformation? (p. p. 37-62). Diane Fromage, Adrienne Héritier, Paul Weismann. https://doi.org/10.1093/9780198913825.003.0003