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Banking in sentence

2429 examples of Banking in a sentence

Common banking supervision is needed for strengthening confidence among countries using common financial backstops.
Common and more integrated supervision is the first step towards a banking union.
Once these proposals are implemented, the banking union will be complete.
Establishing a banking union by 2013 will not give Europe a magic wand with which to wave away the economic crisis overnight; but it is a major and crucial step to restoring the confidence of Europe’s citizens, international partners, and investors.
It will ensure financial stability, increase transparency, make the banking sector accountable, and protect taxpayers’ money.
Much progress has been made on new instruments of integration, such as the European Stability Mechanism (ESM) and the banking union.
The progress made on the banking union is important, but two key components are still needed: first, a true rehabilitation of the European banking system to ensure that credit flows resume throughout the eurozone, while averting deflation; and, second, debt mutualization to protect vulnerable countries from market gyrations.
In this process of energy integration, the banking union offers clues about how to secure common interests and maintain a balance among the EU’s main institutions – the European Commission, the European Parliament, the European Council, and the ECB.
Europe, gripped by a tremendous banking and debt crisis, is not an attractive destination, and loose monetary policy in the US has produced ultra-low bond yields there.
Such an agenda should include the completion of the banking union, with the strengthening of common deposit insurance.
Engineering Financial StabilityNEW HAVEN – The severity of the global financial crisis that we have seen over the last two years has to do with a fundamental source of instability in the banking system, one that we can and must design out of existence.
It is a sort of plumbing problem for the banking system, but we need to fix the plumbing by changing the structure of the banking system itself.
Wasn’t the same problem of debt overhang prominent in the banking crises of the Great Depression, for example?
Contingent capital, a device that grew from financial engineering, is a major new idea that might fix the problem of banking instability, thereby stabilizing the economy – just as devices invented by mechanical engineers help stabilize the paths of automobiles and airplanes.
If a contingent-capital proposal is adopted, this could be the last major worldwide banking crisis – at least until some new source of instability emerges and sends financial technicians back to work to invent our way of it.
And, while a more balkanized financial system does reduce the likelihood of global shocks creating volatility in far-flung markets, it may also concentrate risks within local banking systems and increase the chance of domestic financial crises.
That means working out the final details of the Basel III banking standards, creating clear processes for cross-border bank resolution and recovery, and building macro-prudential supervisory capabilities.
The recent crisis in Cyprus underscores the urgency of establishing a banking union that includes not only common supervision, but also resolution mechanisms and deposit insurance.
That is why I recently proposed a measure to provide firms with more flexibility on mark-to-market requirements and to facilitate asset transfer from the trading book to the banking book.
This issue aside, I have never been persuaded that capital requirements on trading books should be materially lower than for those on banking books.
But the scale of total capital erosion in the event of default is the same, regardless of whether the asset has been held for a single day on the trading book or an entire decade on the banking book.
Under the proposal that was openly discussed in Frankfurt, in addition to the macroeconomic Maastricht criteria that have been in place since the euro’s launch, the quality of a country’s banking system would be used as an additional criterion for euro entry.
The funding from the parent banks that in the earlier phase of the crisis helped provide liquidity to the East European banking systems now appears more as a liability and possible source of contagion.
Add to this the impact of the current West European bank rescue packages on the banking systems of Eastern Europe.
To make the quality of the banking system a new criterion for euro membership is not only hypocritical; it is also counterproductive.
Instead of exploiting the current opportunity of unprecedented leverage over euro candidates to push them to meet the Maastricht criteria, euro incumbents are contemplating a new and exceedingly vague criterion based on the quality of banking systems.
As confidence that Greece will remain in the eurozone plummets, a run on deposits will cause the banking system – and, eventually, the real economy – to collapse.
The banking system will be reinforced.
And, just as importantly, they now understand that it is not enough to ensure that governments can finance their debt at reasonable interest rates; they must also address the weakness of Europe’s banking system.
Indeed, Europe’s banking and sovereign-debt problems are mutually self-reinforcing.
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