• What is the proper role of the ECB in banking supervision and crisis management
• Can Europe's fragmented supervisory structure deliver financial stability
• How will developments in European banking and capital markets challenge the status quo

This book combines contributions from leading academics with those of the key authorities responsible for European banking markets, including Tommaso Padoa-Schioppa, the European Central Bank’s executive board member responsible for supervision. The result is a comprehensive analysis of how Europe can safeguard its financial stability, despite the lack of a centralised supervisory authority.

Understanding the Importance

Understanding the importance of these issues is critical for bankers, academics and financial market authorities throughout Europe and beyond. Alongside the European perspective the authors examine the difficult and politically charged role which all central banks play as lenders of last resort.

In the post-war period, in the words of Charles Goodhart, the “re-emphasised primacy, and clarity, of the monetary stability role has, in practice, been accompanied by some uncertainties about, and even withdrawal from, the second main historical role of central banks, i.e. the provision of financial stability". Which Lender of Last Resort for Europe? Considers how central banks’ can perform their financial stability remit even when direct supervision is carried out elsewhere.

The Financial Markets Group

Since its establishment the FMG at the London School of Economics has been one of the leading international centers of research into the behaviour of financial markets and their interface with the real economy. Financial regulation has been one of the centre’s main research programmes since its inception and the FMG has contributed groundbreaking research in the areas of regulatory structure, risk management and the impact of financial innovation including derivatives.

The FMG organises regular conferences and seminars at which academics and practitioners can exchange views. Which Lender of Last Resort for Europe? is the second volume of the FMG’s collected papers edited by Professor Charles Goodhart and published by Central Banking Publications.

Contributors

The distinguished contributors to Which Lender of Last Resort for Europe? reflect the ongoing success of the London School of Economics’ Financial Markets Group in providing a forum for leading academics and practitioners to address the key financial issues of the day, combining rigorous academic argument with con-crete policy proposals.

This collection of papers from the London School of Economics’ Financial Markets Group examines the critical unresolved question at the heart of Europe’s single currency: Which Lender of Last Resort for Europe?

Table of contents

• Introduction by C.A.E. Goodhart
• Emu and Banking Super by Tommaso Padoa-Schioppa, Executive Board member, European Central Banks
• A Lender of Last Resort for Europe by Michel Aglietta University of Paris
• Financial Stability in European Economic and Monetary Union Contents by Alessandr Prati, International Monetary Fund and Garry J. Schinasi, International Monetary Fund
• Leading of Last Resort and Systematic Stability in the Eurozone by Franco Bruni, University Bocconi of Milan and Christian de Boissieu, University of Paris
• The Role of the European Central Bank with regard to Financial Stability and Lender of Last Resort Operations by Dr. Ross Maria Lastra, Centre for Commercial Law Studies
• What Kind of Financial Stability for Europe? by Drik Schoenmaker, Netherlands Ministry of Finance
• Who Takes Care of Financial Stability in Europe? by Lorenzo Bini Smaghi, Italian Ministry of Finance