Banks: yes to simplification, no to deregulation
“Caesar I was”, and “from within the laws I drew out the excess and the vain ”. Thus does the Supreme Poet had Emperor Justinian speak, suggesting the compass that should guide the Union in reforming banking regulation and supervision: simplification. It is a suggestion that the finance ministers of the European Union have decided to heed. Economic analysis confirms that simplification would have the positive effect of improving the efficiency of the financial system, but also of stimulating economic growth. The starting point is to distinguish between two aspects of regulation that are ...