European bank stress tests

Jo Breiner — Wed, 09 Mar 2011 15:21:17 +0000

According to reports, European banking regulators will weaken parts of the bank stress tests which were created to raise investor confidence in the banking sector. Boston University law professor Cornelius Hurley, Director of BU’s Center for Finance, Law & Policy (formerly the Morin Center for Banking and Financial Law) and a former counsel to the Fed Board of Governors, offers the following comment:

“Early indications are that the European Banking Authority’s stress tests will be watered down in terms of Tier 1 capital and stress scenarios. When the purpose of stress testing is to restore market confidence, incredulous stress tests are worse than no tests at all.

“Is it a lack of will at the EBA that is the problem or is it a structural defect caused by the EBA not having the authority to enforce standards across twenty independent countries?”

Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu, Twitter @ckhurley

“Single rulebook” for European banks

Jo Breiner — Tue, 15 Feb 2011 16:27:34 +0000

Banks in the European Union may soon begin operating under a “single rulebook” according to Andrea Enria, the chairman of the European Banking Authority. Enria believes the move will lead to a more uniform oversight of banks. Boston University law professor Cornelius Hurley, Director of the Morin Center for Banking & Financial Law, offers the following commentary:

“The European Banking Authority is blazing a new trail by eliminating “regulatory arbitrage” among the EU’s member countries. If the EBA can harmonize the regulatory systems of 27 independent countries, why cannot the US coordinate its own system? Time to reopen Dodd-Frank.”

Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu

Professor Voices » Morin Center for Banking & Financial Law

European bank stress tests

“Single rulebook” for European banks