STABILITY OF THE BANKING SECTOR IN EMU

Scientific review article
Autor: Dragana Marković PhD, Srđan Furtula MSc

Summary: After the formation of the EMU, it became obvious that the EU regulatory framework, based on national and uncoordinated systems, is inadequate for the needs of a single financial system. The key problem was the implementation of various directives and regulations of the EU. Although the provision and maintenance of financial stability remains within the competence of all the market participants, who evaluate various risks and accept the consequences of their transactions, systemic risks are not under their control and choice. The ECB must manage any potential negative shocks and crises through regular monitoring and assessment of financial stability, financial regulation and supervision, and a number of measures to manage crisis, on the level of the EMU and on the level of the national competence and bodies.

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