This book provides timely analysis of the cross-border exercise of banking activity in the EU and its supervision, from the perspective of the ‘home-host rule’. It examines the current system and the efficacy of recent reforms considering whether the centralization of decision making and a more effective mutualization of financing tools could increase the efficiency of the EU banking system. The EU banking market is very integrated since banking institutions based in the Union are free to perform their activities within the common market. This has allowed EU banking institutions to significantly increase their cross-border operations. This way of working is based on the home country control principle according to which EU institutions performing cross-border activities continue to be supervised by their home country supervisor. However, this system has raised challenges for effectively performing supervision and resolution. The book analyses how far recent reforms under the banking union regime have addressed these issues. It analyses the main pillars of the banking union. It also analyses how international standards and EU requirements undertake to divide responsibilities between the home and host state and the extent to which they align interests between the home and host and minimize potential conflicts of interests. The book provides a valuable resource for academics researching on central banking union and regulation, and helps legal practitioners to address questions of supervision, resolution, and insolvency with a cross-border element.

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Purpose -The purpose of this paper is to explore the arrangements that have been used in the present crisis and their relative success and to look to the post-crisis situation. Design/methodology/approach -The paper examines and explains the crisis and the roles of deposit insurance and government guarantees. It deals with coverage, funding, institutional structure, speed of payout, incentives, accountability and, in particular, considers how such systems should function in a world of cross-border institutions. Findings -The paper suggests how such principles and standards should be set either through International Association of Deposit Insurers or some more efficient means to complement an international approach to financial stability being addressed by the Basel institutions. Originality/value -There is no widely accepted standard over what the reformed financial system safety net should look like with respect to the protection of deposits and the wider guaranteeing of creditors and other stakeholders. This paper, therefore, makes an attempt to fill that gap.

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