<trans-abstract xml:lang="en" xmlns="http://www.w3.org/1999/xhtml">This paper's objective is analysis of state aid actions carried out by the Community member states that were undertaken between 1 October 2008 and the end of 2011 in reaction to the fnancial crisis. The analysis includes objectives, the scope and the amount of aid granted by the member states and the amount of aid actually used by fnancial institutions in these countries. In addition, the effectiveness of undertaken actions was assessed.State aid actions targeted at rescuing the banking sector were ratified by 22 member states, whereas fnancial institutions in 19 member states made use of the granted aid. Primarily, the actions undertaken by the member states mainly comprised granting guarantees. However, following the spread of the crisis, the aid focused on bailing out banks and undertaking actions regarding assets of reduced quality. The fnancial crisis did not hit banking sectors of the member states equally; therefore, the size of the aid varied significantly. In 2008-2011, banks were using less than 35% of the granted resources, while the aid provided by Ireland, the United Kingdom, Germany, Denmark, and France comprised 73% of all used resources.State aid helped calm the situation in fnancial markets and ensured stability of the fnancial system; the aid most likely prevented mass bankruptcies of banks. On the other hand, they may harm competition within the EU internal market. Currently, the key task for the member states is discontinuation of the use of state aid, as well as adequate restructuring of the banks that received state aid.</trans-abstract>

This paper's objective is analysis of state aid actions carried out by the Community member states that were undertaken between 1 October 2008 and the end of 2011 in reaction to the fnancial crisis. The analysis includes objectives, the scope and the amount of aid granted by the member states and the amount of aid actually used by fnancial institutions in these countries. In addition, the effectiveness of undertaken actions was assessed.State aid actions targeted at rescuing the banking sector were ratified by 22 member states, whereas fnancial institutions in 19 member states made use of the granted aid. Primarily, the actions undertaken by the member states mainly comprised granting guarantees. However, following the spread of the crisis, the aid focused on bailing out banks and undertaking actions regarding assets of reduced quality. The fnancial crisis did not hit banking sectors of the member states equally; therefore, the size of the aid varied significantly. In 2008-2011, banks were using less than 35% of the granted resources, while the aid provided by Ireland, the United Kingdom, Germany, Denmark, and France comprised 73% of all used resources.State aid helped calm the situation in fnancial markets and ensured stability of the fnancial system; the aid most likely prevented mass bankruptcies of banks. On the other hand, they may harm competition within the EU internal market. Currently, the key task for the member states is discontinuation of the use of state aid, as well as adequate restructuring of the banks that received state aid.

Analiza Działań o Charakterze Pomocy Publicznej Podjętych Przez Państwa Członkowskie UE w Odniesieniu Do Sektora Bankowego w Latach 2008-2011

International Journal of Management and Economics

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

This paper's objective is analysis of state aid actions carried out by the Community member states that were undertaken between 1 October 2008 and the end of...

Analiza Działań o Charakterze Pomocy Publicznej Podjętych Przez Państwa Członkowskie UE w Odniesieniu Do Sektora Bankowego w Latach 2008-2011

Pubblicato online: 17 ott 2014

Pagine: 48 - 67

DOI: https://doi.org/10.2478/ijme-2014-0003

Parole chiave
banks, public aid, EU banking sector

© 2013 Agnieszka Brewka

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

Analiza Działań o Charakterze Pomocy Publicznej Podjętych Przez Państwa Członkowskie UE w Odniesieniu Do Sektora Bankowego w Latach 2008-2011

Pubblicato online: 17 ott 2014

Pagine: 48 - 67

DOI: https://doi.org/10.2478/ijme-2014-0003

Parole chiavebanks, public aid, EU banking sector

© 2013 Agnieszka Brewka

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

Parole chiave
banks, public aid, EU banking sector