Author (Person) | Gortsos, Christos |
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Publisher | European Banking Institute (EBI) |
Series Title | EBI Working Papers |
Series Details | Number 132 |
Publication Date | January 2023 |
Content Type | Research Paper |
Abstract:This study discusses recent and current conditions relating to financial stability in the euro area, developing, in particular, on the impact of the current “inflation crisis” on financial stability vulnerabilities. Furthermore, it addresses two related priorities for the Single Resolution Board (SRB): the first relates to the ability of credit institutions (and at what cost) to raise debt in capital markets, in view of the current high levels of interest rates, to timely meet their minimum requirement (for own funds and) eligible liabilities (MREL); the second refers to the eventual need for adjustment of preferred resolution strategies and the development of alternative ones for at least some credit institutions, considering the difficulties in meeting MREL targets under the current conditions. |
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Source Link | https://dx.doi.org/10.2139/ssrn.4325086 |
Subject Categories | Economic and Financial Affairs |
Subject Tags | Banking Union, Financial Services |
Keywords | Banks | Banking, Single Resolution Mechanism (SRM) |
International Organisations | European Union [EU] |
Record URL | https://www.europeansources.info/record/?p=527200 |