The European Banking Union – Does Centralization Facilitate the Effective Supervision of Transnational Financial Institutions?

As part of a set of lectures on "Europe and the Financial Crisis", the Institute of Comparative Law is hosting a guest lecture by Professor Tobias H. Troeger, Frankfurt/Germany, who will speak on "The European Banking Union – Does Centralization Facilitate the Effective Supervision of Transnational Financial Institutions?"

Abstract

Professor Troeger's paper describes and evaluates how competences in prudential supervision of cross-border banking groups are currently allocated among national and supranational authorities in the E.U. The appraisal adopts insights form the economics of public administration and international relations. It argues that the supervisory architecture has to be more aligned with bureaucrats’ incentives and that inefficient requirements to cooperate and share information should be reduced. Contrary to a widespread perception, shifting responsibility to a supranational authority like the European Central Bank cannot solve all the problems identified. This paper sketches an alternative solution that dwells on far-reaching mutual recognition of national supervisory regimes and allocates competences in line with supervisors’ incentives and the risk inherent in cross-border banking groups.

About the speaker

Tobias H. Troeger, Ph.D (Tuebingen), LL.M. (Harvard) is a Full Professor at the University of Frankfurt and a Fellow at the Center for Financial Studies (CFS). He specializes in law and finance, law and economics, and corporate law.

This talk is presented with the generous support of the SSHRC Strategic Knowledge Cluster - Canada–Europe Transatlantic Dialogue.