Pe cine reprezintă Isărescu când anunță acest program politic ?

The Future of the International Banking System

Mugur Isărescu

Governor

National Bank of Romania

Presentation delivered at the Annual Conference

of the Club of Rome

“The POWER OF THE MIND”

[...] IV. The foreseeable future of the European banking systems: the banking union

Let me quote Tommaso Padoa-Schioppa once more. He wrote that the old way of thinking along the Westphalian concept of nation-states is no longer suited for policy action when dealing with problems that are transnational, such as the financial crisis. For instance, Europe as a whole does not have large external deficits, or a high indebtedness of the household sector. Yet, it is being penalized by markets because its politicians try to solve the problems along the lines of nation-states.

IV.1. The need for a banking union
 
From this perspective, the EMU is visibly incomplete. On the one hand, in the absence of a fiscal union, sovereign spreads vary according to market perception. On the other hand, in the absence of a banking union, banks are perceived as contingent liabilities of individual sovereigns.

The EU is presently dealing with the negative feedback loop between banks and sovereigns.

The imperative need to break this vicious circle gave birth to a wide consensus that the banking union is a less controversial and more feasible solution than a fiscal union. It is viewed as a way to place the banking sector on a more sound footing and restore confidence in the euro. It is also viewed as a step towards a fiscal union.

A banking union is also a good answer from the perspective of the so-called “impossible trinity”, which points out that financial stability and financial integration are not compatible with preserving supervision at national level (Schoenmaker, 2011).

IV.2. The project

Now let us turn to what the projected banking union would imply. The current design envisages the banking union as functional for the euro area with an opt-in clause applicable to non-euro area Member States. At this stage, the proposal consists of four complementary pillars.

First, there should be a single rulebook. This means that the members of the banking union should establish and implement a harmonized framework for banking regulation and supervision.

Second, there should be a single supra-national supervisory authority in charge across the union (the main supervisory tasks will be transferred from the national to the European level).

Third, there should be a single bank resolution mechanism to address potential banking crises.

V. By way of conclusion

By way of conclusion, I would say that we should adjust our ways of thinking and acting to the shifting economic and financial reality, rather than force the financial system to embrace a more or less fashionable theoretical approach. Not only the current crisis, but also the troubled history of the banking system reveals that the viable solution is to find a balanced approach between the roles markets and governments have to play in order to put the economy on a smooth growth path. In this context, the financial system reform measures should aim not only at avoiding the outbreak of a new crisis in the future, but also at ensuring that the new architecture of the financial system enhances its ability to support sound economic growth.

Thank you very much for your attention and, last but not least, for your patience. I also appreciate that you accepted that I slipped from the shoes of the President of the Romanian Association of the Club of Rome into the ones of the Governor of the National Bank of Romania.

http://www.bnro.ro/DocumentInformation.aspx?idInfoClass=6885&idDocument=13619&directLink=1 

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ARCoR
The Romanian Association for The Club of Rome

http://www.clubofrome.ro/arcor/aboutus.php

President
Mugur Isarescu

Vice Presidents
Mircea Malitza
Sergiu Celac
Ionel Haiduc
Florin Pogonaru

Secretary General
Calin Georgescu

Executive Director
Mugur Tolici

Honorary Members
Ion Iliescu
Emil Constantinescu

LUCIAN LIVIU ALBU
FLORIN COLCEAG
DANIEL DAIANU
CRISTIAN HERA
DINU GIURESCU
TRAIAN MARIAN GOMOIU
MARIUS IOSIFESCU
SOLOMON MARCUS
ALEXANDRU MIRONOV
NICOLAE PANIN
DAN DUMITRU POPESCU
MARIUS SALA
GHEORGHE TEODORESCU
ANTON ANTON
VALENTIN ALEXANDRESCU
NICOLAE DANILA
RADU GRATIAN GHETEA
ALEXANDRU GRUMAZ
VALENTIN LAZEA
SILVIU NEGUT
FLORIN GEORGESCU
CRISTIAN POPA
VIRGIL STOENESCU
VIRGINIA MIRCEA
IOAN RUS
MADLEN SERBAN
DORU BOSTINA
DRAGOS CABAT
CLAUDIU CERCEL
GABRIEL COMANESCU
COSMIN DOBRAN
PETRU DUMITRIU
IONUT DUMITRU
MARIANA GHEORGHE
COMAN GIORGIU
OTILIA MANTA
SERBAN MATEI
MIRCEA PERPELEA
EUGEN POPA
ERNEST POPOVICI
ANDREI POSTELNICU
MIRELA ROMAN
GABRIEL SEBE
CRISTIAN SPORIS
MUGUR STET
BOGDAN URSULEANU
EMIL VONVEA
MARCEL VULPOI
IOANA ZANE
VICTOR ANDREI
AL. NICOLAE PAUNESCU
PETRU RARES
RADU MUNTEANU
DANIEL PITURLEA
LUCIAN ANGHEL
REMUS BENTA
MIRCEA MURESAN
EMILIAN M. DOBRESCU
REMUS PRICOPIE
FLORIAN LIBOCOR
FLORIN RADULESCU
DAN VIOREL PAUL
DAN COSTIN NITESCU
LIVIU TUDOR
ANTON COMANESCU
DUMITRU POPESCU