Precautionary recapitalisations: time for a review
The paper conducts an analysis of the precautionary recapitalisation tool of article 32.4(d)(iii) of the BRRD, which gives Member States the ability to provide support to solvent banks with a capital shortfall highlighted by stress tests and asset quality reviews, in case of a serious disturbance in the economy. In doing so, the paper examines the relationship between precautionary recapitalisation, financial stability and a serious disturbance in the economy underlying how the absence of a clear definition of ‘serious disturbance’ and ‘financial stability’ gives sufficient room for manoeuvre to determine when to provide aid. It also reviews the applicable rules on State aid and burden sharing, which allow for sufficient flexibility in case of financial stability concerns, balancing the needs of preserving financial stability but at the same time taking competition policy interests into account. Overall, precautionary recapitalisation is a necessary measure, especially given the current economic climate and its potential to facilitate the restoration of necessary capital levels.
Detaljna analiza
Vanjski autor
Costanza Russo and Rodrigo Olivares Caminal, Queen Mary University of London
Informacije o dokumentu
Vrsta publikacije
Područje politike
Ključna riječ
- direktiva EU-a
- državna potpora
- EKONOMIJA
- ekonomska politika
- ekonomska stabilizacija
- Europska središnja banka
- EUROPSKA UNIJA
- FINANCIJE
- financijska intervencija
- financijska pomoć
- gospodarsko stanje
- građansko pravo
- institucije EU-a i europska javna služba
- kreditna ustanova
- kreditne i financijske institucije
- MEĐUNARODNI ODNOSI
- monetarna ekonomija
- monetarna politika
- organizacija poslovanja
- platežna sposobnost
- poduzeće u poteškoćama
- politika suradnje
- POSLOVANJE I KONKURENCIJA
- potpora za restrukturiranje
- PRAVO
- pravo EU-a
- slobodno kretanje kapitala
- stečaj
- TRGOVINA
- trgovinska politika
- tržišna intervencija