Evaluating and managing systemic risk in the European Union

Avadanei, Anamaria and Ghiba, Nicolae (2010): Evaluating and managing systemic risk in the European Union. Published in: Hradec Economic Days 2011 Proceedings Part II, Economic Development and Management of Regions , Vol. ISBN 9, (2 February 2011): pp. 22-26.

Abstract

The financial crisis has exposed the weaknesses in national and international economies, the disruption of the financial systems all over the world. The aim of this paper is to point out the importance of systemic risk management in the European Union (EU). Structured on two parts, the study presents the evaluation methods of the systemic risk in the mentioned area and the main proposals for the financial stability reconstruction. To conclude, deep reforms are needed: an adequate financial regulation and supervision, the evaluation of the performance over time, new rules for improving capital and liquidity and a better communication between institutions in order to prevent and neutralize possible distress.

• Item Type: MPRA Paper
• Language: English
• Keywords: Systemic risk; financial crisis; European Union
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; G - Financial Economics > G0 - General > G01 - Financial Crises

References

[1]EIJFFINGER, S.C.W., “Defining and Measuring Systemic Risk”, European Parliament, Brussels, 2009, p. 4

[2] EVANS, O., LEONE, A., GILL, M., HILBERS, P.,” Macro prudential Indicators of Financial System Soundness”, IMF Occasional Papers, Washington DC, 2000, p. 9

[3] ***EUROPEAN PARLIAMENT, “Economic reform and stability for a new economy: The European Parliament's work”, 2010, p.1

[4] ***FRESHFIELD BRUCKHAUS DERINGER, “The Capital Requirements Directive and Bankers’ Bonuses: Some Questions and Answers”, 2010, p.1

[5] ***INTERNATIONAL MONETARY FUND, “Assessing the Systemic Implications of Financial Linkages”, Global Financial Stability Report, Washington DC, 2009, p. 2, ISBN: 978-1-58906-809-4