<trans-abstract xml:lang="en" xmlns="http://www.w3.org/1999/xhtml">This paper analyzes possible consequences of new reforms of the EU supervisory structure. The focus is on its impact in the supervision of European banking groups operating on the Polish fnancial market. The paper also assesses proposals for new regulation in the banking sector submitted by the European Commission.There is a possibility that the new regulations would constitute acceptance of a higher level of risk in the fnancial sector. A further weakening of supervisory standards is anticipated to hide shortages in own sources of funding. Additionally, there may be increased pressure for financing the economy to speed up economic growth. So far, sufficient steps have not been taken towards restoring the health of the fnancial sector. Effective actions can be performed only at the domestic level. However, they are only possible if they are not restricted by European law. Effective counter-cyclical prevention at the credit market is possible only at the local level.The paper emphasizes that the lack of proper country-level fnancial supervision can cause systemic risk at the local level. Those risks quickly enlarge and spread to become international in scope.</trans-abstract>

This paper analyzes possible consequences of new reforms of the EU supervisory structure. The focus is on its impact in the supervision of European banking groups operating on the Polish fnancial market. The paper also assesses proposals for new regulation in the banking sector submitted by the European Commission.There is a possibility that the new regulations would constitute acceptance of a higher level of risk in the fnancial sector. A further weakening of supervisory standards is anticipated to hide shortages in own sources of funding. Additionally, there may be increased pressure for financing the economy to speed up economic growth. So far, sufficient steps have not been taken towards restoring the health of the fnancial sector. Effective actions can be performed only at the domestic level. However, they are only possible if they are not restricted by European law. Effective counter-cyclical prevention at the credit market is possible only at the local level.The paper emphasizes that the lack of proper country-level fnancial supervision can cause systemic risk at the local level. Those risks quickly enlarge and spread to become international in scope.

Ryzyko Płynące z Nowej Organizacji Nadzoru Nad Sektorem Bankowym w Unii Europejskiej

International Journal of Management and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

This paper analyzes possible consequences of new reforms of the EU supervisory structure. The focus is on its impact in the supervision of European banking...

Ryzyko Płynące z Nowej Organizacji Nadzoru Nad Sektorem Bankowym w Unii Europejskiej

Published Online: Oct 17, 2014

Page range: 36 - 47

DOI: https://doi.org/10.2478/ijme-2014-0002

Keywords
fnancial supervision, fnancial sector, systemic risk, fnancial stability, home-and host-supervisor, Systematically Important Financial Institutions (SIFI), European Supervisory Authorities (ESAs)

© 2013 Stanisław Kluza

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Ryzyko Płynące z Nowej Organizacji Nadzoru Nad Sektorem Bankowym w Unii Europejskiej

Published Online: Oct 17, 2014

Page range: 36 - 47

DOI: https://doi.org/10.2478/ijme-2014-0002

Keywordsfnancial supervision, fnancial sector, systemic risk, fnancial stability, home-and host-supervisor, Systematically Important Financial Institutions (SIFI), European Supervisory Authorities (ESAs)

© 2013 Stanisław Kluza

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
fnancial supervision, fnancial sector, systemic risk, fnancial stability, home-and host-supervisor, Systematically Important Financial Institutions (SIFI), European Supervisory Authorities (ESAs)