Chapter 9: Resilience in the EU Banking Sector and Beyond
This chapter reviews scientific work conducted in support of the policy-making processes of the European Commission in reforming the financial sector. It first discusses how the introduction of new prudential requirements, resolution, and supervision tools in the aftermath of the Global Financial Crisis has allowed for a considerable reduction in the risk of systemic crises. This chapter also discusses how further benefits could come from further harmonization of resolution and insolvency frameworks, as well as from the completion of the Banking Union, including the introduction of a European Deposit Insurance Scheme, and of a European Safe Asset. Finally, this chapter briefly overviews more recent research underpinning policy efforts to enhance financial resilience toward the risks linked to climate change and the green transition, as well as to the impacts of the digital transformation.