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The Future of Banking - PEGGED book ()

2011 , Edited by Thorsten Beck, ISBN (eBook):978-1-907142-46-8, 91 pages

Sovereign risk and banking risk are in reality so dangerously intertwined that no big European bank is now safe from the potential impact of holding bad government debt. This PEGGED book presents a collection of essays that offer solutions to the crisis and proposals for medium- to long-term reforms to the regulatory framework in which financial institutions operate. Amongst them, the authors present the case for a forceful resolution of the Eurozone crisis through the introduction of 'European Safe Bonds' (ESBies).

The authors stress the need for a stronger, European-wide regulatory framework as well as for a European-level resolution authority for systemically important financial institutions (SIFIs), but they also recall that it is also extremely important to ensure that we do not forget the essential role of banks in terms of their vital contribution to the 'real economy' and the pivotal role they play as lenders to small- and medium-size enterprises in support of economic growth at local and regional levels.

  • More information on the PEGGED project