EUROPEAN FINANCE AFTER THE CRISIS European crisis is not over, despite tentative signs that the containment strategy is working Two key themes dominate the 2011 banking agenda Local sovereign / banking crises and negative feedback loops Transmission mechanism via funding markets Circuit breakers?: 1) make the banks stronger; 2) provide cheap liquidity to solvent institutions and sovereigns; 3) restructure insolvent entities Regulatory and capital debates Market and regulatory conventions are changing Basel III + SIFI buffers Bail-in & resolution regimes Financial stability vs. growth debate
1