The largest European banking group (Finanzgruppe, group of savins banks in Germany) is a big fan of the Banking union and wants you to know it.
Their latest “state of the banking union” report is literally on fire. A thread
Their latest “state of the banking union” report is literally on fire. A thread
You enjoy resolution rules?
“Two early practical cases (Banca Popolare di Vicenza and Veneto Banca) sparked debate about conceptual deficiencies in the resolution mechanism”
“Two early practical cases (Banca Popolare di Vicenza and Veneto Banca) sparked debate about conceptual deficiencies in the resolution mechanism”
Clearly, uniform resolution governance would improve the situation. Not so fast:
”Making the SRB responsible for all banks cannot be justified either economically or politically”
”Making the SRB responsible for all banks cannot be justified either economically or politically”
EDIS (European deposit guarantee) is crucial to the banking union.
LOL.
“Above all, however, the fundamental goal of a centralised system – intergovernmental risk sharing and the perverse incentives it creates – deserves to be called into question.”
LOL.
“Above all, however, the fundamental goal of a centralised system – intergovernmental risk sharing and the perverse incentives it creates – deserves to be called into question.”
You think it’s time to setup a European FDIC?
You must be joking.
"By focusing exclusively on minimising cost, it disregards the potential adverse repercussions on customers, SMEs and regions.”
You must be joking.
"By focusing exclusively on minimising cost, it disregards the potential adverse repercussions on customers, SMEs and regions.”
It’s time to get rid of the home-host problem and have full group supervision.
Are you mad?
“Such a change would ignore the lessons learned regarding the “too big to fail” problem […] & overlooks the risks of [...] a deterioration in the supply of financial services."
Are you mad?
“Such a change would ignore the lessons learned regarding the “too big to fail” problem […] & overlooks the risks of [...] a deterioration in the supply of financial services."
It's time to get rid of those NPLs in banks’ balance sheet! Surely we can agree on that!
What? Are you insane?
”It would be wrong to try to reduce risk by creating economic policy incentives for the sale of receivables”.
What? Are you insane?
”It would be wrong to try to reduce risk by creating economic policy incentives for the sale of receivables”.
“Selling receivables does not really reduce risk – it simply moves it from the seller’s balance sheet to the buyer’s.”
And don’t try to stuff your EDIS on me once NPLs have gone down, I’m not that stupid!
And don’t try to stuff your EDIS on me once NPLs have gone down, I’m not that stupid!
"This shows that the forced reduction of NPL ratios alone is far from being a sufficient basis for risk sharing in the euro area”
Oh, and by the way, about those TARGET 2 balances, don’t @LorcanRK me please.
“Imbalances in the TARGET system are a clear indication of risk asymmetries in the euro area that are deeply rooted in the structural aspects of national banking markets”
“Imbalances in the TARGET system are a clear indication of risk asymmetries in the euro area that are deeply rooted in the structural aspects of national banking markets”
In a nutshell, as their homepage says clearly:
“Again and again: The Banking Union is endangering stabilising structures as Savings Banks” !
“Again and again: The Banking Union is endangering stabilising structures as Savings Banks” !
Good luck resisting the strongest banking lobby in Europe 😉
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