Systemic Risk. Bailed-In.

Abstract

In this publication we are interested in the systematic risk affecting certain categories of entities in the financial sector defined as G-SII and O-SII; in the macro-prudential supervision is imposed capital reserves for systemic risk, reserves for the preservation of capital and countercyclical capital reserves to counter the pro-cyclical dynamics resulting from economic crises. In this study we were interested in the legislative aspects related to the systemic risks sanctioned by the European Commission with the CRD IV directive (2013/36/EU) and to the recommendations of the European systemic risk committee, CERS. After taking a look at the situation of Italian banks with reference to the effects of the 2008 economic crisis, we took an interest in the single SSM supervisory mechanism established by regulation (EU) no. 1024/2013, which subjects the banks of the participating Member States to central supervision of the ECB or to supervision by the competent national authorities within the SSM, a dynamic that has created inconsistencies between EU supervision and national treatment in resolution procedures sanctioned by the provisions of Directive 2014/59/EU, inconsistencies restored by the introduction of the SRM single resolution mechanism. In the framework of the legislative interventions aimed at the resolution of those in crisis, a legislative proposal is issued for the regulation (EU) 586/2015 which modifies the regulation (EU) n. 806/2014 in order to establish a European deposit insurance system, providing for the establishment of a European deposit insurance system (EDIS) as the third pillar of the banking union to guarantee depositors and aimed at reducing the negative effects of a economic crisis caused by the rush to bank branches. This is a complete EUlevel insurance system for SGDs (depositor guarantee schemes). In the last chapter we carried out a study on the BRDD directive (2014/59/EU) which establishes a framework for the recovery and resolution of credit institutions and investment firms, with an overriding interest in collective investment activities (collective investment funds in securities securities, UCITS in contractual form) and liabilities for which the authorities they have a ban to exercise the power of reduction and conversion in application of the Bail-in, a resolution tool contained in the BRDD directive, with particular attention to existing national legislative differences on protection of funds between a bank and an investment firm.

Keywords: system risk, CRD directive, Recommendations ESRB, credit crises, single SSM supervisory mechanism and SRM single resolution mechanism, european EIDS deposit insurance system, SGD depositor guarantee schemes, resolution dedicated to credit, bail-in, directive BRRD, ECB opinion 2006/21.