In parallel with the ongoing review of the effect of financial regulations implemented since the start of financial crisis as requested by the European Commissioner Jonathan Hill, Karel Lannoo discusses the big items dominating EU financial policies and their implementation in his new book “The Great Financial Plumbing”.
The author acknowledges that policy-makers implemented a large amount of regulation to make sure that a banking crisis such as the one in 2008 does not happen again. Whereas some of the financial legislation put in place addresses pressing issues, he also argues that some of the measures put a lot of undue pressure on regulators and banks.
Although the book carries an important caveat against overregulation, the author considers the Banking Union to constitute significant progress, making the banking system safer by triggering early intervention, avoiding reliance on taxpayers’ money to bail out banks and enforcing market discipline.
Register for the launch of “The Great Financial Plumbing”