The Availability of Household Deposits in the Euro Area vs. Regulatory Approach to Funding Stability of Credit Institutions
The single funding stability regulations of the CRD IV package1 are the results of credit institutions’2 constraints during the last banking crisis. Before 2007, these entities were characterised by clear tendency to finance their dynamically increasing assets with short-term funds from wholesale...
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| Format: | Conference or Workshop Item |
| Language: | English |
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Trường Đại học Kinh tế
2020
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| Online Access: | http://repository.vnu.edu.vn/handle/VNU_123/97643 |
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| Institution: | Vietnam National University, Hanoi |
| Language: | English |
| Summary: | The single funding stability regulations of the CRD IV package1 are the results of credit
institutions’2 constraints during the last banking crisis. Before 2007, these entities were
characterised by clear tendency to finance their dynamically increasing assets with short-term
funds from wholesale markets. Such activity weakened their ability to deal with liquidity
crisis and intensified systemic risk. Its ultimate result was the involvement of central banks to
stabilize money markets and governments - to rescue individual credit institutions and to
strengthen national deposit guarantee schemes. The access to long-term and stable funds,
insensitive to changing environment, therefore turned out to be a guarantor of entities’ safety
during the turmoil. |
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