Date: Tuesday, 11 April 2017 16:00Venue: Asia Platform | City: Bruxelles, Belgium
Introduction by the Chair
Mr Erik Famaey, Senior Associate, European Institute for Asian Studies (EIAS)
Mr Jutaro Kaneko, Chief Representative in Brussels, Japan Center for International Finance (JCIF)
Mr Guillaume Adamczyk, Head of Unit, Single Resolution Board
Mr Emiliano Tornese, Deputy Head of Unit, Resolution and Crisis Management, DG FISMA, European Commission
Too Big to Fail? How Europe and Japan Deal with Failing Banks
Following high growth in the second half of the 1980s the Japanese economy imploded, taking its banks with it. Years of dithering with resolving the banking problem led to a fully-fledged crisis that made Japanese banks the outcast of the international market and pushed the economy into a stretched-out ‘lost decade’. Dramatic interventions by the government and the central bank forced a wholesale restructuring of the sector.
For quite some time now, it is Europe’s turn to deal with the fragility of its own banking system. From the ailing Italian bank Monte dei Paschi di Siena to the ‘systemic risk’ posed by Deutsche Bank, the European banking sector is crying out for intensive care. Sovereign crises, an unfinished banking union, differences between member states, and an uncertain regulatory environment, are just some of the complicating stresses.
What lesson can Europe draw from the Japanese experience? How would Japanese and European authorities differ in dealing with failing banks? Will a less multilateral approach in regulation also fragment the financial markets? Is regulatory cooperation on financial matters part of the long-awaited EU-Japan FTA / Strategic Partnership Agreement?