{"id":6481,"date":"2014-02-05T13:26:36","date_gmt":"2014-02-05T11:26:36","guid":{"rendered":"http:\/\/www.poleconomix.gr\/portal\/?p=6481"},"modified":"2014-02-13T13:45:54","modified_gmt":"2014-02-13T11:45:54","slug":"framing-banking-union-in-the-euro-area-some-empirical-evidence","status":"publish","type":"post","link":"https:\/\/www.poleconomix.gr\/portal\/framing-banking-union-in-the-euro-area-some-empirical-evidence\/","title":{"rendered":"Framing Banking Union in the Euro Area: Some empirical evidence"},"content":{"rendered":"<p>Diego Valiante.<\/p>\n<p>Evidence shows that financial integration in the euro area is retrenching at a quicker pace than outside the union. Home bias persists: Governments compete on funding costs by supporting \u2018their\u2019 banks with massive state aids, which distorts the playing field and feeds the risk-aversion loop. This situation intensifies friction in credit markets, thus hampering the transmission of monetary policies and, potentially, economic growth. This paper discusses the theoretical foundations of a banking union in a common currency area and the legal and economic aspects of EU responses. As a result, two remedies are proposed to deal with moral hazard in a common currency area: a common (unlimited) financial backstop to a privately funded recapitalisation\/resolution fund and a blanket prohibition on state aids.<\/p>\n<p><strong>\u03a0\u03b7\u03b3\u03ae:<\/strong> CEPS<\/p>\n<p><a href=\"http:\/\/www.ceps.eu\/book\/framing-banking-union-euro-area-some-empirical-evidence\" target=\"_blank\">\u03c0\u03bb\u03ae\u03c1\u03b5\u03c2 \u03ba\u03b5\u03af\u03bc\u03b5\u03bd\u03bf<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Diego Valiante. Evidence shows that financial integration in the euro area is retrenching at a quicker pace than outside the union. Home bias persists: Governments compete on funding costs by supporting \u2018their\u2019 banks with massive state aids, which distorts the playing field and feeds the risk-aversion loop. This situation intensifies friction in credit markets, thus [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,32,4],"tags":[26,27],"class_list":["post-6481","post","type-post","status-publish","format-standard","hentry","category-19","category-32","category-proposals","tag-26","tag-27"],"_links":{"self":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/6481","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/comments?post=6481"}],"version-history":[{"count":2,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/6481\/revisions"}],"predecessor-version":[{"id":6549,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/6481\/revisions\/6549"}],"wp:attachment":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/media?parent=6481"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/categories?post=6481"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/tags?post=6481"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}