La régulation financière : l'espoir déchu

The author argues that the EU has experienced a 'regulatory retreat' in the financial sector, characterized by the abandonment of structural reforms, the implementation of dysfunctional prudential ratios, and the failure to regulate shadow banking. The text highlights how lobbying and the 'better regulation' agenda have weakened rules on food speculation and securitization, leaving the EU vulnerable to future financial crises, potentially triggered by the Covid-19 pandemic.

• The European Commission officially withdrew the proposed structural reform of the banking sector in October 2017, which aimed to address systemic risk by banning proprietary trading and separating core banking from high-risk activities.
• Prudential rules introduced via CRD V and CRR II are deemed dysfunctional because their ratios are calibrated to avoid constraining large banks; for instance, the leverage ratio is set at 3% while academics suggest 10% to 15%.
• Technical standards adopted in early 2017 failed to effectively limit food speculation, setting position limits at 20% for some human consumption food derivatives and 25% for other commodity derivatives, which are significantly higher than US limits of 5% to 15%.
• The EU has failed to regulate 'shadow banking' despite a 2013 legislative provision requiring the Commission to evaluate limits on bank exposure to parallel systems by December 31, 2015.
• The 2017 framework for 'simple, transparent and standardised' (STS) securitization is criticized for allowing banks to retain only 5% of the risk on their balance sheets and for including highly speculative 'synthetic securitization'.
• The author warns that the EU is ill-equipped for a new financial crisis, noting that thirteen European banks remain globally systemically important and that risk has shifted from banks to less-regulated shadow banking entities.

APA

Denis, G. (2020). La régulation financière : l'espoir déchu. Green European Journal. https://www.greeneuropeanjournal.eu/regulation-financiere-lespoir-dechu/

Chicago

Denis, Gaspard. La régulation financière : l'espoir déchu. Green European Journal, 2020. https://www.greeneuropeanjournal.eu/regulation-financiere-lespoir-dechu/.

Wikipedia

{{cite report |last1=Denis |first1=Gaspard |title=La régulation financière : l'espoir déchu |publisher=Green European Journal |date=20 March 2020 |url=https://www.greeneuropeanjournal.eu/regulation-financiere-lespoir-dechu/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{denis2020rgulation, author = {Denis, Gaspard}, title = {{La régulation financière : l'espoir déchu}}, institution = {Green European Journal}, year = {2020}, month = mar, url = {https://www.greeneuropeanjournal.eu/regulation-financiere-lespoir-dechu/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }