Supervision
Working Paper
The Effect of Creditor Rights on Bank Monitoring, Capital Structure and Risk-taking
We examine the multi-faceted effect of creditor rights on the way banks monitor, operate and finance themselves. We present a simple analytical model that shows that a strengthening of creditor rights reduces the need for banks to monitor their...Read more
The Single Supervisory Mechanism or ?SSM?, Part One of the Banking Union
The Regulation on the Single Supervisory Mechanism mandates the European Central Bank to exercise prudential supervision on the most significant banks located in the Euro area, whether directly by the Bank?s own services, or indirectly by the...Read more
Good Monitoring, Bad Monitoring
Are courts effective monitors of corporate decisions? In a controversial landmark case,
the Delaware Supreme Court held directors personally liable for breaching their fiduciary
duties, signalling a sharp increase in Delaware?s...Read more
Audit Committees of Public Interest Entities in Europe
In 2014 the European Union reformed the regulatory framework of statutory audits in Directive 2014/56/EC and Regulation (EU) Nr. 537/2014. Part of the new legislation addresses the composition and responsibilities of the audit committee of public...Read more
Banking Union: Aspects of the Single Supervisory Mechanism and the Single Resolution Mechanism Compared
The Banking Union is based on different components, partly on directives applicable throughout the EU, partly on two regulations applicable only in the euro states introducing the Single Supervisory Mechanism and the Single Resolution Mechanism....Read more
Standard Setting for Accountants and the Role of the Public Interest Oversight Board
Standard setting for accountants and auditors takes places in international bodies, organised within the framework of the International Federation of Accountants. These are the International Standards on Auditing (ISAs) and the ethical standards...Read more
Single Supervision and the Governance of Banking Markets
In this paper, I try to assess the likely impact of the Single Supervisory Mechanism (SSM) on Eurozone banking markets. I start by analysing the predictions made by economists and policy makers with regard to the deeper integration of financial...Read more
Monetary Liability for Breach of the Duty of Care?
This paper clarifies why optimal corporate governance generally excludes monetary liability for breach of directors? and managers? fiduciary duty of care. In principle, payments predicated on judicial evaluations of directors? and managers?...Read more
The German Law of and Experience with the Supervisory Board
Together with a number of other countries including China Germany has a two-tier board system, i.e. its stock corporation law provides for the division between the management board and the supervisory board. This is different from most other...Read more
Corporate Governance of Banks and Financial Institutions: Economic Theory, Supervisory Practice, Evidence and Policy
Banks are special, and so is the corporate governance of banks and other financial institutions as compared with the general corporate governance of non-banks. Empirical evidence, mostly gathered after the financial crisis, confirms this. Banks...Read more
Risk-shifting through Issuer Liability and Corporate Monitoring
This article explores how issuer liability reallocates fraud risk and how risk allocation may reduce the incidence of fraud. In the US, the apparent absence of individual liability of officeholders and insufficient monitoring by insurers...Read more