DECO SEMINAR | Banking Union: a favorable step for consumer interests?

On January 21, DECO will debate the implications for Portuguese consumers of the proposed directive that gives the European Central Bank the role of sole supervisor of 6,000 Eurozone banks.

EVENT PROGRAM

The seminar will take place between 9:30 a.m. and 5:30 p.m. at ISEG's CGD AuditoriumThe event will take place in Lisbon and will be attended by the Deputy Secretary of State for the Economy and Regional Development, António Almeida Henriques, Pedro Duarte Neves, Deputy Governor of the Bank of Portugal, and Vasco Colaço and Pedro Moreira, from DECO, among other experts.
 
Failures in financial regulation and supervision were at the root of the 2008 international crisis, which drastically reduced consumer confidence in the banking system and financial markets and whose effects are still visible. Examples of this are the bankruptcy of credit institutions in the United States (Lehman Brothers and Bear Stearns) and the United Kingdom (Northern Rock), as well as state intervention programs, including in Portugal, to save the banking sector.
 
The situation also affected countries with unbalanced public accounts, giving rise to the sovereign debt crisis. Ireland, Greece and Portugal had to resort to financial aid programs. In recent years, the continuity of the Euro itself and the European Union has also come into question.
 
To prevent mistakes from being repeated, the European Parliament has adopted a draft directive on Banking Union within the Eurozone, which gives the European Central Bank the role of sole supervisor of around 6,000 European banks. The directive gives the ECB full powers over transnational banks, those that have asked for help or whose situation poses a risk to the entire sector.

Given the implications for a sector that is vital to the proper functioning of the economy, such as banking, DECO considers it important to debate the significance of these decisions for Portuguese and European consumers.

 What benefits does this new regulatory and supervisory architecture bring to the Portuguese banking system and to national depositors?

What changes can be expected for consumers?

What role do national regulators have?

Can consumers expect better services and better competition as a result of any improvement in regulation and supervision?