Assessments and Proposals
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Finally, this chapter contains the author’s assessments and proposals. Assessments (in the first section) pertain to the basic tasks of the European Central Bank (ECB) within the Eurosystem and some institutional aspects governing its operation, the necessary link between a more robust EMU and a well-functioning and financial stability-enhancing Banking Union (BU), as well as the positive effects and the concerns from the dual role of the ECB as monetary and banking supervisory authority. In the second section, specific modest proposals are put forward for an improved European bank safety net, which in the author’s view contains several elements of fragmentation (described as ‘partial Europeanisation of the bank safety net’), even after the establishment of the BU and even with regard to significant credit institutions. In this respect, apart from indicating that an important missing element in the architecture is harmonisation at EU level of the rules on winding up credit institutions, it proposes an enhanced role for the ECB in the provision of last-resort lending within the Emergency Liquidity Assistance mechanism and assigning it with powers relating to the provision of liquidity in resolution.
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