Cross-Border Groups: Supervision after the Crisis
The financial crisis which began in 2007 has dramatically laid bare the limits and shortcomings of the current financial regulatory system and supervisory controls both at the national level (although there are often considerable differences between the various contexts) and internationally. The situation is, if possible, even more critical with regard to cross-border and cross-sector operators. There had been warnings for some time (see, for example, Vella, 2002) of the risk that the financial system that had emerged from the consolidation and internationalisation process of the past decade would not be capable of dealing adequately with any faults which might occur within it. But as is demonstrated by the history of financial crises, and is confirmed by the current situation, unfortunately regulators tend to respond to market failures rather than preventing them in the first place.
KeywordsEuropean Central Bank Competent Authority Capital Adequacy Supervisory Authority European Banking Authority
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