What doesn’t kill you makes you stronger: lessons from banking crises

Belgium, Brussels, 1000, Wilfried Martens Centre for European Studies
Tuesday, April 11 2017 / 12:30

Have we learned enough from the major banking crisis of history, not least the devastating one that first erupted ten years ago? Since the spectacular series of bank failures that triggered the great depression, banking reform has been high on the international and European agenda, and the EU regulatory environment has profoundly changed.

Higher capital requirements for banks were introduced, as well as a revolutionary Single Supervisory Mechanism that europeanised banking supervision since December 2014. Our discussion will wonder whether there is not more to banking stability than capital requirements and effective supervision.

Based on its innovative study of British banking stability from 1800 to the present, Prof. John Turner will argue that extended shareholder liability and the unavailability of public bank rescues can reach similar goals while avoiding the inefficiency of detailed and complex rules.