Open Access
The myth of Cypriot bank resolution 'success' : a plea for a more holistic and less costly supervision & resolution approach
Loading...
Files
Yiatrou_2017.pdf (730.47 KB)
Embargoed until 2018
License
Cadmus Permanent Link
Full-text via DOI
ISBN
ISSN
1566-7529; 1741-6205
Issue Date
Type of Publication
Keyword(s)
LC Subject Heading
Other Topic(s)
EUI Research Cluster(s)
Initial version
Published version
Succeeding version
Preceding version
Published version part
Earlier different version
Initial format
Author(s)
Citation
European business organisation law review, 2017, Vol. 18, No. 3, pp. 503-533
[ADEMU]
Cite
YIATROU, Mikaella, The myth of Cypriot bank resolution ’success’ : a plea for a more holistic and less costly supervision & resolution approach, European business organisation law review, 2017, Vol. 18, No. 3, pp. 503-533, [ADEMU] - https://hdl.handle.net/1814/50208
Abstract
This paper advocates for actively minimising the price of bank resolution at each part of the new regulatory banking structure. It does so by examining how the banking resolution costs were increased due to decisions taken at different stages of the regime during the experience of Cyprus with bank supervision, early intervention, resolution and liquidation. The paper then moves on to argue that increasing instead of decreasing the lingering bank resolution costs in Cyprus tainted the picture of bank resolution success for which the Cypriot experience has become somewhat of a posterchild. It argues that if the success of bank resolution is evaluated after a series of bad supervisory decisions, it is more than likely to conclude that resolution was successful because it resolved a very detrimental situation. Simply put, the success of the Cypriot bank resolution might as well equate to a gigantic failure of bank supervision. As such, while acknowledging the benefits and successes of the new regime, this paper tries to showcase that the application of the supervisory and resolution regime in Cyprus hides a lot of elements that are very far from successful, but which can nevertheless form constructive lessons for the practical application of the regime in the future.
Table of Contents
Additional Information
First Online: 16 October 2017
The final publication is available at link.springer.com via the DOI
The final publication is available at link.springer.com via the DOI
External Links
Publisher
Version
Research Projects
European Commission, 649396
Sponsorship and Funder Information
Advanced through a conference funded by the ADEMU project, which is funded by the European Union's Horizon 2020 Program under grant agreement N° 649396 (ADEMU).