The ECB After the Crisis: Existing Synergies Among Monetary Policy, Macroprudential Policies and Banking Supervision

A Tale of Three Crises: Synergies between ECB Tasks

“…In response to these existential challenges, today's financial framework has evolved with respect to pre-crises times (see Cassola et al, 2019). Some of the most significant financial reforms are the Single Regulatory Framework (Single Rule Book), the implementation of Basel III in Europe, the establishment of the ESFS, and ultimately banking union with the Single Supervisory Mechanism (SSM) and the Single Resolution Board (SRB) (but not a European deposit insurance scheme (EDIS) as yet).…”

“…Banking supervision in Europe was characterised by a limited exchange of information at EU level and differing supervisory practices and regulatory frameworks. Moreover, there were few incentives for cooperation among supervisors until well into the global financial crisis, despite evident cross-border spillover effects (Cassola et al, 2019). In addition, there were no joint banking resolution procedures despite some bank mergers and increasing interbank funding across borders (see ECB reports on financial integration).…”

“…This differentiation includes the strict separation of meetings and agendas. See Cassola et al (2019). Additional credit easing measures were added to revive the provision of credit to the economy.…”

“…For more detailed descriptions of the new macroprudential policy framework, see Constâncio et al (2019) and Cassola et al (2019).…”