Montalbano competing interest groups and lobbying in the construction of the european banking union (2021)

Competing Interest Groups and Lobbying in the Construction of the European Banking Union Giuseppe Montalbano Competing Interest Groups and Lobbying in the Construction of the European Banking Union Giuseppe Montalbano Competing Interest Groups and Lobbying in the Construction of the European Banking Union Giuseppe Montalbano Department of Political Science LUISS Guido Carli Free International University Rome, Italy ISBN 978-3-030-65424-5    ISBN 978-3-030-65425-2 (eBook) https://doi.org/10.1007/978-3-030-65425-2 © The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2021 This work is subject to copyright All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the ­publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made The publisher remains neutral with regard to jurisdictional claims in published maps and ­institutional affiliations Cover illustration: © Alex Linch shutterstock.com This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland To my parents Acknowledgments This work is the product of a long journey that started with my Ph.D at LUISS Guido Carli in Rome and continued in the subsequent post-doc years, going through many phases of my academic life, changes of mind, and challenges For sure, the birth and realization of this book would not have been possible without those scholars and friends who have accompanied me in the course of its development and several remakes First of all, I have to thank Leonardo Morlino for having accepted to be my Ph.D supervisor at LUISS Guido Carli and for guiding me in the thesis work I want to reserve a special thanks to Bastiaan Van Apeldoorn, whose work has been a veritable source of inspiration for my thesis and who then became a precious guide in the development of my research project as co-­ supervisor Of course, my Ph.D project has been enriched, thanks to the fruitful dialogue and exchanges with my colleagues and scholars at LUISS.  In particular, I would like to thank Raffaele Marchetti for his advice on issues related to participatory democracy and Civil Society engagement at the EU level; Domenico Melidoro, for being a unique reference point during the Ph.D years; Silvia Menegazzi, for our conversations and mutual support Particular thanks are due to Mario Telò, who introduced me to teaching International Relations and European Integration, becoming a key reference figure for my academic career growth After my Ph.D., the continuation, refinement, and further development of this work owe much to scholars and colleagues who enriched my understanding of the EU financial regulation through their suggestions, constructive criticisms, and confrontations Thus, I have to thank Manuela Moschella for giving me the opportunity to work at the Department of vii viii  ACKNOWLEDGMENTS Political Science of the Scuola Normale Superiore in Florence and all the post-doc colleagues at Palazzo Strozzi, in particular the “quartermaster” Lorenzo Zamponi and Loris Caruso During my post-doc in Florence, I had the luck to meet Lucia Quaglia, whose advice and support have been invaluable for the prosecution of this research and to whom I want to give a special acknowledgment here The conferences and seminars in my post-­ doc years have been a unique source of stimulus and advice from outstanding scholars and colleagues who contributed unwittingly to the further elaboration of this work Here I would like to recall and thank Daniel Mügge, Eleni Tsingou, Leila Simona Talani, Radhika Desai, David Howarth, and Huw Macartney for their observations, criticisms, and suggestions Lastly, my gratitude goes to all those friends of mine around Italy and Europe who, at the same time, put up with me and supported in the ups and downs of such a research journey: my music-mates “Utveggi,” my old and new colleagues at Scuola Normale and LUISS Guido Carli, and my “battle buddies” in Pisa, Rome, and around Italy However, a special place must be reserved for Claudia, who supported me more than anyone else, being always close to me, even at a distance My last thanks go to my brother and first among all the friends of mine, Gabriele, and to my parents, Maria Teresa and Luigi, to whom this book is dedicated Contents Part I  1 1 Introduction  3 The Argument   7 Structure of the Book  10 Bibliography  12 2 A Critical Transnationalist Approach to the European Financial Governance 15 Beyond the Domestic/Supranational Dichotomy in the European Integration Theory  16 Research Design  34 Methodology and Sources  37 Bibliography  39 3 The Banking Industry in the Aftermath of the Financial Crisis 53 The European Banking Industry in the Wake of the Twin Crises  54 Mapping Interest Groups in the EU Banking Regulation  75 Issue Salience  88 Bibliography  91 ix x  CONTENTS Part II  97 4 The Supranationalization of Banking Supervision in Europe 99 The Construction of the Single Market and the Idea of a Single European Supervision 102 Seizing the Moment: The European System of Financial Supervision 107 The Single Supervisory Mechanism 117 Conclusion 133 Bibliography 135 5 The Crisis Management Framework and the Single Resolution Mechanism147 The European Agenda 149 Policy Definition 153 The BRRD in the Context of the SRM 158 The Construction of the SRM 165 On the SRB 167 The SRF 170 The Negotiations 173 The SRM and the SRF 175 Conclusions 184 Bibliography 186 6 The Unbacked Backstop: The European Deposit Insurance Scheme197 Setting the Principles for Global Deposit Insurance 199 The Revision of the DGS Directive 201 The DGS Directive 211 The Prospects of the EDIS 213 The de Lange Report 219 The Stalemate in the EDIS Negotiations 221 Conclusions 222 Bibliography 224 7 The Reform of the Prudential Framework and the Single Rule Book229 Setting the International and European Agenda 231  CONTENTS  xi Basel III and the Commission Proposal 235 The Negotiations 240 The CRR/CRD IV Package 244 A Banking Package to Get the Post-crisis Job Done? 246 Banks Efforts to Review the CRR/CRD IV 248 The Commission Proposal of a Banking Package 255 Negotiating the Banking Package 258 Final Regulation and Directive 261 Conclusions 262 Bibliography 265 8 The Forgotten Pillar: On the Rise and Fall of the Banking Structural Reform277 On the International Agenda 279 The Liikanen Report and the Commission Proposal 281 The Reform Initiatives in the UK, Germany, and France 283 The Stakeholder Consultations 289 The Commission Proposal 292 The Draft ECON Report 295 The Council Agreement 296 The Stalemate and Failure of the Reform 297 Conclusions 298 Bibliography 302 9 Conclusions311 Bibliography 321 Bibliography323 Index327 Bibliography AFME (2012) Bank Recovery and Resolution Directive AFME Comments in View of the Trilogues London Retrieved March 25, 2014, from https:// www.afme.eu/portals/0/globalassets/downloads/consultation-responses/ afme-comments-on-brrd-for-trilogues.pdf Ayadi, R., & Lastra, R. M (2010) Proposals for Reforming Deposit Guarantee Schemes in Europe Journal of Banking Regulation, 11(3), 210–222 Bieler, A., & Morton, A. D (2018) Global Capitalism, Global War, Global Crisis Cambridge: Cambridge University Press Council of the EU (2018) Banking Package (CRR/CRD/BRRD/SRMR) General Endorsement of the Results of the Trilogue Brussels Retrieved from https://data.consilium.europa.eu/doc/document/ST-14447-2018INIT/en/pdf Drezner, D. W (2008) All Politics Is Global: Explaining International Regulatory Regimes Princeton/Oxford: Princeton University Press Feld, L. P (2015) Ordoliberalism, Pragmatism and the Eurozone Crisis: How the German Tradition Shaped Economic Policy in Europe European Review of International Studies, 2(3), 48–61 Financial Times (2014, January 16) European Parliament Challenges Plan for €55bn Bank Rescue Fund Retrieved July 26, 2015, from https://www.ft com/content/7c1d0dda-7ec0-11e3-8642-00144feabdc0 Financial Times (2016, May 19) Europe’s Quest for Bank ‘Bail-ins’ Poses Risks to Retail Investors Retrieved March 2, 2017, from https://www.ft.com/content/bd6c5a9a-1d0e-11e6-a7bc-ee846770ec15 © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 G Montalbano, Competing Interest Groups and Lobbying in the Construction of the European Banking Union, https://doi.org/10.1007/978-3-030-65425-2 323 324  BIBLIOGRAPHY Gill, S (1990) American Hegemony and the Trilateral Commission New  York: Cambridge University Press Glöckler, G., Lindner, J., & Salines, M (2017) Explaining the Sudden Creation of a Banking Supervisor for the Euro Area Journal of European Public Policy, 24(8), 1135–1153 Goodhart, C., & Avgouleas, E (2014) A Critical Evaluation of Bail-in as a Bank Recapitalisation Mechanism In F. Allen, E. Carletti, & J. Gray (Eds.), Bearing the Losses from Bank and Sovereign Default in the 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(2013) Financial Regulation and Supervision in the European Union After the Crisis Journal of Economic Policy Reform, 16(1), 17–30 Reuters (2013, September 17) TIMELINE  – German Landesbanken’s Bailout and Restructuring So Far Retrieved 18 October, 2015, from https://www reuters.com/article/banking-germany-landesbanken/timeline-germanlandesbankens-bailout-and-restructuring-so-far-idUSL5N0H820520130917 Schildbach, J (2011) Home, Sweet Home? International Banking After the Crisis Frankfurt Am Main: Deutsche Bank Research Schmitter, P. C., & Streeck, W (1999) The Organization of Business Interests: Studying the Associative Action of Business in Advanced Industrial Societies MPIfG Discussion Paper, 99(1) Single Resolution Fund  – Intergovernmental Agreement (SRF  – IGA) (2014, May 24) Agreement on the Transfer and Mutualization of Contributions to the Single Fund Brussels Retrieved July 23, 2015, from http://register.consilium.europa.eu/doc/srv?l=EN&f=ST%2010088%202014%20INIT Surrey, W. S., & Nash, P. N (1984) Bankers Look Beyond the Debt Crisis: The Institute of International Finance Columbia Journal of Transnational Law, 23, 111–130 Tsingou, E (2010) Regulatory Reactions to the Global Credit Crisis: Analyzing a Policy Community Under Stress In E.  Helleiner, S.  Pagliari, & H. Zimmermann (Eds.), Global Finance in Crisis: The Politics of International Regulatory Change (pp. 35–50) New York: Routledge Underhill, G. R (2000) State, Market, and Global Political Economy: Genealogy of an (Inter-?) Discipline International Affairs, 76(4), 805–824 Underhill, G. R (2008) Setting the Rules: Private Power, Political Underpinnings, and Legitimacy in Global Monetary and Financial Governance International Affairs, 84(3), 535–554 Underhill, G. R., & Zhang, X (2005) The State-Market Condominium Approach In R. Boyd & T.-W. Ngo (Eds.), Asian States Beyond the Developmental Debate (pp. 43–66) London/New York: Routledge Interviews   ESMA Stakeholder Group, high-level representative, Brussels (15 December 2014)   European Commission DG FISMA, representative 1, Brussels (3 March 2015)  3 European Commission DG FISMA representative 2, Brussels (10 March 2015)   Association of German Banks (BDB) representative, phone (1 April 2015)  5 Federation of German Industries (BDI) representative, phone (16 March 2015) 326  BIBLIOGRAPHY   Eppink, Derk 2015 MEP, European Conservatives and Reformists Brussels (10 March 2015)   Lamberts, Philippe 2015 MEP, European Green Party Brussels (2 March 2015)  8 High-level Expert Group on Financial Supervision, Member 1, Rome (13 February 2015)  9 High-level Expert Group on Financial Supervision, Member 2, phone (3 March 2015) 10 High-level Expert Group on reforming the structure of the EU banking sector, Member 1, phone (16 January 2015) 11 High-level Expert Group on reforming the structure of the EU banking sector, Member 2, phone (27 January 2015) 12 EFR 2015 High-level representative, Brussels (15 January 2015) 13 EFR Member, phone (19 December 2018) 14 European Securities Market Expert Group and European Securities Market Stakeholder Group, Member, Brussels (12 February 2015) 15 EBF Public Affairs representative, Brussels (11 March 2015) 16 EBF High-level officer in Prudential Policy & Supervision, phone (30  October 2018) 17 HSBC Public Affairs representative, Brussels (27 February 2015) 18 Finance Watch, Joost Mulder, Finance Watch Brussels (10 March 2015) 19 Finance Watch, Katarzyna Hanula-Bobbitt, Finance Watch Brussels (10 March 2015) 20 EPFSF representative, Brussels (9 March 2015) 21 Bank of New  York Mellon, Public Affairs representative, Brussels (9 March 2015) 22 EFAMA Public Affairs representative, Brussels (18 August 2015) 23 De Lange, Esther 2018 MEP, European People’s Party, phone (11 November 2018) 24 Dutch Banking Association, Public Affairs representative, phone (16 October 2018) 25 ESBG, Public Affairs representative, phone (7 November 2018) 26 Italian Banking Association (ABI), Public Affairs representative, Rome (23 May 2018) Index1 A ABI, see Italian Banking Association ABN AMRO, 69 Achleitner, Josef, 79, 287 Ackermann, Josef, 61, 77, 79 AEB, see Spanish Banking Association AFME, see Association for Financial Markets in Europe Allianz, 85 Anglo-Saxon finance, 18, 19, 279, 286, 298 Association for Financial Markets in Europe (AFME), 78, 80, 86, 123, 128, 153–155, 157, 160–162, 168, 169, 171, 186, 209, 235–237, 249–253, 257, 258, 260, 261, 290, 294 Association of German banks (BDB), 110, 123, 127, 154, 155, 165, 167, 169, 171, 174, 215, 252, 262, 287, 294, 296 Association of German Cooperative banks (BVR), 125, 172, 287 Association of German Public Banks (VÖB), 82, 125, 172 Association of German Savings Banks (DSGV), 81, 125, 172 Austria, 58, 71n5, 124, 129 Austrian Labour Chamber (BAK), 87 Aviva, 79, 85 B BaFin, see German Federal Financial Supervisory Authority Bail-in, 11, 148, 151–154, 156, 158, 160–167, 169, 170, 173, 175–177, 179, 181–184, 186, 200, 219, 314, 317 Bail-out, 5, 61–63, 65, 68, 69, 117, 118, 134, 150, 162, 172, 175, 177, 183, 289  Note: Page numbers followed by ‘n’ refer to notes © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 G Montalbano, Competing Interest Groups and Lobbying in the Construction of the European Banking Union, https://doi.org/10.1007/978-3-030-65425-2 327 328  INDEX Banca Popolare di Vicenza, 254 Banco Popular, 291 Banking book, 252 Banking Communication 2013, 164 Banking Package, 9, 11, 231, 246–248, 255–260, 262, 263, 312 Banking, regulation, 6, 8, 15, 20, 53, 74, 88, 230, 243, 289, 298, 312, 319 Banking structural reform, 129, 164, 167, 218, 241, 242, 278–280, 282–284, 286–290, 293, 294, 296–299, 301, 316, 320 Banking supervision, 118, 120, 133–135, 206, 280 Banking Union, 6, 7, 9–12, 15, 20, 21, 24, 25, 34, 37, 54, 74, 89, 99, 101, 108, 119, 120, 122–124, 127, 128, 131, 134, 135, 149, 150, 156, 158–160, 164, 165, 167, 178, 179, 183, 186, 198, 199, 207, 209, 213, 216, 221–223, 247, 253, 254, 257, 259, 261, 262, 277, 293, 297, 298, 300, 313, 316, 317, 321 Bank of America Merrill Lynch, 85 Bank of International Settlements (BIS), 199 Bank of New York Mellon, 85 Bank Recovery and Resolution Directive, 11 BankTrack, 238 Banques Populaires et Caisses d’Epargne (BPCE), 69, 81, 84, 85 Barnier, Michel, 3, 281, 291 Barroso, José, 106, 134, 247, 248, 250 Basel Committee, 231 Basel Committee on Banking Supervision (BCBS), 76, 152, 199–201, 221, 229, 231–235, 239, 244, 245, 252, 257, 259, 262, 312 Basel II, 76, 77, 231, 232, 234, 246, 263 Basel III, 231, 233, 235–240, 244, 246, 247, 249, 251, 254, 259, 263, 312 standards, 239, 247, 254, 257, 262, 263, 312 BBA, see British Bankers Association BBVA, 68, 85, 219 BCBS, see Basel Committee on Banking Supervision BDB, see Association of German banks BDI, see Federation of German Industries Belgium, 58, 71n5, 129 Better Finance, 86, 180, 249 BNP, 3, 56n2, 60, 63, 68, 80, 84, 85, 111, 125, 160, 236 BPCE, see Banques Populaires et Caisses d’Epargne British Bankers Association (BBA), 78, 84, 111, 127, 156, 206, 235–237, 249, 251–253, 284, 290, 294 British banks, 55, 67, 110–113, 127, 206, 253, 283–285, 290 BSR, see Banking structural reform Bundesbank, 171, 216 BVR, see Association of German Cooperative banks (BVR) C Cajas, 126, 166, 219 Capital buffers, 131, 230, 232–234, 241, 242, 244–246, 253, 255, 258, 260, 261, 263, 264, 281  INDEX  Capitalism, 8, 18, 28 Capital Markets Union (CMU), 250, 254, 256, 260, 261, 263, 294–296, 298, 301, 316, 317, 321 Capital requirements directive (CRD), 11, 230, 232, 233, 235, 237, 243, 246, 250, 253, 263 Capital requirements regulation, 9, 11, 157, 180, 204, 229, 232, 233, 235–237, 239, 240, 243–248, 250–253, 256, 260, 263, 288–290, 295–297, 312, 319, 320 CBI, 112, 290 Central and Eastern European countries, 102, 103, 258 CET1 capital, 230, 239, 244, 255, 258 China, 56, 57 Citi, 56, 80, 85 City of London, 20, 55, 67, 71, 80, 84, 90, 111, 117, 119, 156, 242, 283, 298, 299 Civil Society, 12, 32, 35, 75, 78, 87, 133, 203, 260, 280, 289, 300, 312, 317 CMU, see Capital Markets Union Coalition-making capacity, 9, 35, 278, 283, 320 Commerzbank, 61, 62, 68, 85 Competition politics, 31 Constructivism, 25 Consumer organizations, 83, 86, 110, 112, 185, 203, 212, 293 Content analysis, 38 Continental banking, 18, 19, 58, 112, 117, 125, 127, 165, 166, 236, 242 Core equity capital, 182, 244, 258 Core European countries, 36, 64, 100, 147, 163 329 Council of the EU, 82, 114, 116, 129, 130, 163, 169, 173, 180, 208, 219, 242–244, 254, 258–260, 297 Covered bonds, 176, 256, 264 CRD, see Capital requirements directive Crédit Agricole, 56n2, 81, 84, 290 Credit Suisse, 68, 80, 85, 151 Crisis management, 5, 6, 11, 100, 113, 119, 135, 147–186, 206, 209, 219, 238, 259, 278, 313, 314, 317, 319, 320 Critical IPE, 8, 10 Critical transnationalist approach, 10, 15–38 Critical transnationalist framework, 26, 311 Cross-border banking, 7, 20, 65–67, 69, 106, 107, 118, 125, 230, 259, 297 CRR, see Capital requirements regulation Cyprus, 58, 71n6, 102, 162, 172, 185 Czech Republic, 102 D De Lange, Esther, 220 De Larosière, Jacques, 77, 106, 108, 109, 111, 113, 116, 133, 233, 282, 286 Debt write-down, 148, 151, 152, 154, 156, 158, 159, 174, 176 Denmark, 58, 68 Deposit guarantee scheme, 11, 118, 201–206, 208–220, 222, 223, 315 Derivatives, 61, 78, 155, 158, 162, 163, 176, 177, 180, 234, 237, 249, 252, 255, 257, 259, 264, 293, 295 330  INDEX Deutsche Bank, 56n2, 60–62, 77, 79, 85, 111, 124, 151, 166, 169, 252, 287, 290, 317 Dexia, 118 DGB, 113 DGS, see Deposit guarantee scheme Directive on Deposit Guarantee Scheme (DGSD), 198, 207, 222 DK, see German banking industry committee Dombrovskis, Valdis, 257, 297 Doom loop, 11, 58, 73, 148, 149, 175, 177, 183–186, 198, 247, 314 Draghi, Mario, 120, 134, 183 Dresdner Bank, 61 DSGV, see Association of German Savings Banks Dutch Banking Association (NVB), 123, 209, 217, 220, 252, 253 E EACB, see European Association of Co-operative Banks EAPB, see European Association of Public Banks EBF, see European Banking Federation EBIC, see European Baking Industry Committee EBU, see Banking Union ECB, see European Central Bank ECOFIN, see Economic and Financial Affairs Council ECON, see European Parliament’s Committee on Economic and Monetary Affairs Economic and Financial Affairs Council (ECOFIN), 82, 114, 169, 172–174, 181, 198, 219, 221 Economic and Monetary Union (EMU), 4–6, 21, 23, 24, 34, 54, 71, 73, 74, 79, 88, 101, 102, 117, 118, 120, 123, 126, 134, 147, 165, 175, 198, 209, 213, 313, 314 EDIS, see European Deposit Insurance Scheme EFR, see European Financial Services Round Table Élites banks, 7, 64, 85, 103, 104, 106, 119 corporate, 31, 75, 79 financial, 78 industrial, 79 political élites, 17, 63, 88, 174 EMU, see Economic and Monetary Union EPP, 296, 298, 301 ERT, see European Roundtable of Industrialists ESAs, see European Supervisory Authorities ESBG, see European Savings and Retail Banks ESFS, see European system of financial supervision ESM, see European Stability Mechanism Euro-crisis, see Eurozone crisis Eurofi, 77, 82, 119, 152, 233, 286 EuroInvestors, 238 European Association of Co-operative Banks (EACB), 81, 112, 126, 130, 154, 155, 161, 162, 166, 180, 217, 218, 236, 237, 251–253, 290 European Association of Craft, Small and Medium-Sized Enterprises (UEAPME), 236  INDEX  European Association of Public Banks (EAPB), 81, 112, 126, 236, 237, 253, 290 European Banking Authority, 10, 115–118, 120, 124, 128, 130, 134, 177, 211, 212, 230, 243, 255, 259, 313 stress tests, 118, 119, 134, 313 European Banking Federation (EBF), 59, 80, 104, 109, 110, 123, 127, 130, 132, 149–151, 153–155, 157, 160–163, 165, 167–169, 171, 185, 206, 209, 211, 212, 217, 233, 235–237, 249, 251–253, 257–261, 280, 290, 294, 295 European Banking Industry Committee, 82 European Central Bank (ECB) stress test, 182 supervision, 110, 119–131, 133, 135, 150, 178, 209, 262, 289, 313, 314 supervisor, 34, 54, 55, 60, 64, 66, 70, 76, 82, 99, 102, 113, 118, 120–135, 149, 161, 162, 164, 166–168, 171, 174, 182, 183, 223, 232, 243, 251, 254, 255, 257–259, 261, 262, 314 supervisory board, 122, 127, 130–132, 178, 254 European Commission, 9, 70, 86, 106, 109, 114, 120, 121, 151, 153–159, 164, 167, 168, 170, 180, 200, 203, 205, 208, 213, 221, 229, 233, 234, 239, 248, 250, 251, 253–256, 281, 292, 293, 298 European deposit insurance, 11, 201, 201n1, 210, 213, 214, 219, 247 331 European Deposit Insurance Scheme (EDIS), 198, 199, 207, 213–219, 221–223, 261, 315, 316 European Federation of Deposit Insurers, 200–202 European Financial Services Round Table (EFR), 79, 80, 103–106, 110, 119, 153–155, 157, 161, 235, 248, 249, 290, 294 European Left, 296 European Parliament, 9, 30, 34, 37, 82, 115, 121, 173, 174, 178, 208, 219, 250, 254, 260, 278, 280, 281, 294, 296, 297, 300 European Parliamentary Financial Services Forum, 82 European Parliament’s Committee on Economic and Monetary Affairs (ECON), 38, 82, 83, 115, 120, 161, 163, 164, 169, 174, 219, 220, 240, 241, 257, 260, 295–297, 301, 316 European Roundtable of Industrialists, 79, 81, 112, 126, 153, 155, 157, 161, 162, 166, 180, 217, 235–237, 251–253, 290 European Savings and Retail Banks (ESBG), 81, 112, 126, 153, 155, 157, 161, 162, 166, 180, 217, 235–237, 251–253, 290 European Stability Mechanism (ESM), 118, 120–122, 125, 135, 162, 165, 170, 172, 174, 181, 182, 184, 210, 316 recapitalization, 118, 181–183 European Supervisory Authorities (ESAs), 109–112, 114–116, 118, 128, 134, 313 European system of financial supervision (ESFS), 101, 105, 109 332  INDEX Euro-periphery, 58, 59, 71–74, 125, 177, 199, 209, 210, 216, 219, 220, 251, 254 Eurozone crisis, 6, 73, 89, 90, 108, 117, 125, 128, 165, 167, 182, 207–209 Expert group De Larosière, 77, 108, 133, 286 Insolvency Law, 152 Liikanen, 221, 281, 289, 292, 293, 299, 300, 316 F FBF, see French Banking Federation Federal Reserve Bank, 62, 77, 279 Ferreira, Elisa, 169 Finance Watch, 87, 128, 164, 167, 184, 218, 240, 241, 246, 249, 251–253, 256, 261, 262, 281, 288, 289, 291, 292, 295, 296, 300 Financial backstop, 165, 170, 172, 175, 181, 183, 185, 198, 210, 216, 223, 314, 315, 317 Financial safety net, 4, 118, 134, 148, 171, 174, 186, 198, 199, 202, 207, 212, 216, 219, 223 Financial Services Action Plan, 102 Financial stability, 20, 21, 119, 122, 125, 130, 133, 151, 158, 184, 206, 212, 217, 247, 254, 259, 288, 295, 298 Financial Stability Board, 201 Financial supervision, 10, 20, 25, 79, 105–108, 110, 111, 113, 117 Financial trilemma, 20 Finland, 58, 71n5, 124, 129, 182, 281 FoEE, see Friends of the Earth Europe Fortis bank, 63, 68 France, 18, 19, 56n2, 58, 59, 63, 64, 69, 71, 71n5, 72, 76, 81, 84, 89, 89n7, 90, 113, 123, 129, 134, 161, 179, 180, 212, 242, 243, 278, 280, 283–290, 296–301, 316 French Association of Private Enterprises, 290 French Banking Federation (FBF), 84, 111, 123, 153, 154, 157, 165, 169, 171, 175, 180, 216, 218–220, 235–237, 251–253, 285, 290, 294, 296 Friends of the Earth Europe, 87, 238 FRTB, see Fundamental Review of the banks’ Trading Book FSAP, see Financial Services Action Plan FSB, see Financial Stability Board Fundamental Review of the banks’ Trading Book (FRTB), 252, 257, 259, 262, 264 G German banking industry committee (DK), 166, 204, 210, 214, 216, 218, 221, 251, 253, 259–261, 287, 290, 294 German banks, 57, 62, 72, 124, 156, 159, 166, 171, 172, 174, 204, 210, 213–216, 251, 287, 294, 316 German consumers association (VZBV), 291 German Federal Financial Supervisory Authority, 204, 288 Germany, 4, 18–21, 56n2, 57–62, 64, 71, 71n5, 72, 81, 84, 89, 89n7, 91, 107, 113, 118, 123, 124, 126, 129, 135, 149, 161, 166, 171, 178, 179, 182, 186, 204, 215, 216, 220, 221, 230, 242, 243, 247, 278, 280, 283–291, 296–301, 316  INDEX  GFMA, see Global Financial Markets Association Giegold, Sven, 115 Global financial crisis, 4, 6, 18, 19, 32, 36, 53, 54, 64, 65, 76, 78, 90, 99, 101, 103, 106, 150, 184, 197, 200, 317 Global Financial Markets Association, 78 Globally systemic banks, 56n2, 253, 260 Goldman Sachs, 57, 80, 85 Greece, 58, 71, 71n6, 214, 216, 247 Greens, 115, 260, 296, 301 Group of Thirty (G30), 78 Group of Twenty (G20), 64, 151, 229, 231, 239, 242, 262, 312 G-SIBs, see Globally systemic banks G30, see Group of Thirty G20, see Group of Twenty Gyllenhammar, Pehr, 79 H Halifax Bank of Scotland (HBOS), 63 Harmonization, 11, 99, 101, 103, 106, 111, 131, 148, 150, 155, 160, 198, 201–204, 206, 208, 209, 211, 212, 222, 229, 230, 234, 241, 242, 246, 253, 254, 264 Hegemonic projects, 27, 33, 314, 315 Hegemony, 21, 27, 33, 88 Historical institutionalism, 24 Hökmark, Gunnar, 161, 163, 295–298, 301 Hollande, Franỗois, 90, 123, 216, 217, 285, 286 Hong Kong and Shanghai Bank of Commerce (HSBC), 56n2, 63, 77, 85, 127, 288 Hungary, 102, 201 333 I ICB, see Independent Banking Commission ICMA, see International Capital Markets Association IIF, see Institute of International Finance IMF, see International Monetary Fund Independent Banking Commission, 279, 284, 285 Influence, corporate influence, 8, 10, 32, 34–38, 320 ING, 56n2, 111 Institute of International Finance (IIF), 76, 77, 79, 152, 154, 175, 233, 238, 252, 253 International Association of Deposit Insurers, 199 International Capital Markets Association, 77, 110, 249 International Monetary Fund, 3, 57, 62, 77, 166, 182, 200 International Swaps and Derivatives Association (ISDA), 78, 111, 233, 235–237, 251–253, 257, 290 Intesa Sanpaolo, 64, 69, 111 Ireland, 58, 71, 71n6, 197 ISDA, see International Swaps and Derivatives Association Issing, Otmar, 110, 113 Issue salience, 8–10, 12, 32, 33, 35, 36, 88–90, 134, 214, 223, 262, 283, 285, 288, 300, 312, 316, 319 Italian Banking Association (ABI), 84, 111, 123, 156, 159, 161, 162, 165, 169, 171, 172, 219, 237, 251, 291 Italy, 56n2, 58, 59, 64, 69, 71, 71n6, 72, 76, 84, 89, 89n7, 90, 114, 117, 123, 129, 157, 215, 219, 222, 243, 247, 254 334  INDEX J Japan, 56, 238 JP Morgan Chase, 56, 80, 85 Juncker, Jean-Claude, 213, 215, 247, 250, 294, 295, 298, 301 K Kangaroo Group, 83 Kemmer, Michael, 215 L Lamfalussy committees, 104, 106, 108, 109, 112, 113 Lamfalussy framework, 102, 104, 106 Landesbanken, 62, 126, 131, 204, 215 LCR, see Liquidity Coverage Ratio Lehmann Brothers, 147, 289 Lender of last resort, 5, 6, 73, 118, 147, 171, 175 Leverage ratio, 230, 233, 234, 236–241, 243, 246, 249, 251–253, 255, 257, 260, 261, 264 LIBA, see London Investment Banking Association Liberal intergovernmentalism, 17 Libor, 61, 284 Light-touch approach, 281, 287, 318 Liikanen, Erkki, 281–283, 286–293, 299, 300, 316 Liquidity Coverage Ratio, 233, 236, 239, 243, 245 Liquidity requirements, 121, 229, 231, 232, 235, 236, 238, 239, 243, 244, 246, 249–251, 255, 257, 262 Lloyds Banking Group, 63, 85 Loan-to-value (LTV) ratio, 252 Lobbying coalition, 299 Lobbying efforts, 37, 104, 126, 162, 186, 206, 212, 233, 246, 285, 289, 294, 316 Lobbying resource, 238, 320 London Investment Banking Association (LIBA), 80, 111, 233 LR, see Leverage ratio Luxembourg, 58, 71n5, 113, 201 M Malta, 71n5, 102 Market-based banking, 53, 254, 279 Market-enhancing approach, 177, 314, 317, 318 Market-making approach, 18, 19, 279, 281, 282, 286, 288, 291, 293, 294 Market-shaping approach, 19 Merkel, Angela, 25, 118, 120, 124, 135, 166, 169, 171–173, 213, 215, 286, 287 Minimum requirements of eligible liabilities (MREL), 161, 177, 185 Monte dei Paschi di Siena, 254 Morgan Stanley, 57, 80, 85 Moscovici, Pierre, 172, 286 N Neo-functionalism, 22–24 Neo-Gramscian, 10, 26, 33 Netherlands, 56, 56n2, 58, 64, 69, 71n5, 72, 81, 84, 123, 124, 129, 161, 182, 212 Net Stable Funding Ratio, 233, 236, 243, 245, 246, 251, 253, 255, 257, 259, 260, 262, 264 NGO, 83, 87, 128, 153, 167, 238, 240, 241, 244, 249, 289, 291 Nomura, 80  INDEX  Non-performing loans, 58, 59, 214, 221, 247, 254 Nordea Bank, 56n2 Nordic Financial Unions, 87, 113 Northern Rock, 63, 197, 289 NPLs, see Non-performing loans NSFR, see Net Stable Funding Ratio NVB, see Dutch Banking Association O Ordo-liberal model, 25, 318 Osborne, George, 284 Oudéa, Frédéric, 257 Over-the-counter markets, 78 P Pillar 2, 236, 237, 239, 245, 253, 255, 256, 261, 264 Poland, 102 Policy entrepreneurship, 8, 23, 24, 33, 118, 148, 175 Politicization, 17, 101, 172, 173, 185, 220, 222, 223, 230, 231, 311, 313, 315, 316, 319, 320 Portugal, 58, 71n6 Postbank, 61 Preference-attainment, 38, 319 Price-to-book ratio, 57 Process-tracing, 37, 318, 319 Public interest groups, 31, 86, 87, 129, 164, 167, 240, 241, 251, 278, 281, 289, 291, 316 R Rabobank, 69, 81, 85, 206, 217 Ravoet, Guido, 127 Regional German banks, see Landesbanken Regulatory capture, 32, 113, 317 Return on Equity (RoE), 55, 56, 58 335 Ring-fence, 103, 168, 253, 259, 281, 286 Risk assessment methodology internal ratings-based, 237, 252, 253, 263, 312 standardized, 237, 252, 256, 257, 263 RoE, see Return on Equity Royal Bank of Scotland, 56n2, 63, 85, 127 Risk-weighted assets (RWA), 215, 220, 239–241, 244 RWA, see Risk-weighted assets S Santander, 56n2, 63, 68, 85, 151, 219, 288 Schäuble, Wolfgang, 124 Scholz, Olaf, 221, 222 Second Banking Directive, 103 Securities Industry and Financial Markets Association, xv, 78 Securitization, 4, 60, 62, 133, 234, 249, 250, 256, 257, 264, 293 SIFMA, see Securities Industry and Financial Markets Association Single market in financial services, 4, 54, 65, 68, 79, 100, 102, 108 Single Resolution Board, 168, 174, 178, 183, 213, 215, 315 Single Resolution Fund, 11, 164, 165, 168–171, 173, 175, 178, 179, 181, 182, 184, 218, 315 Single Resolution Mechanism, 11, 147–186, 215, 293, 315 Single rulebook, 11, 131, 232, 234, 244, 247, 253 Single Supervisory Mechanism, 10, 21, 101, 117–135, 160, 165, 166, 168, 174, 182, 186, 215, 244, 293, 314, 315 Slovakia, 71n5, 102 336  INDEX Slovenia, 71n6, 102 Small and Medium-Sized Enterprises (SMEs), 53, 70, 81, 178, 183, 206, 239, 241, 248, 249, 253, 256, 262, 279, 286 Small-N research design, 37, 38, 318 SMEs, see Small and Medium-Sized Enterprises Socialdemocratic Party of Germany (SPD), 221, 286 Socialists and democrats, 296, 297, 301 Société Générale, 56n2, 69, 84 Sovereign debt crisis, 3, 6, 10, 24, 54, 55, 57, 58, 70, 72–74, 90, 101, 117, 120, 123, 126, 133, 134, 149, 150, 156, 185, 198, 207, 210, 254, 313, 314 Spain, 56n2, 58, 59, 64, 68, 71, 71n6, 72, 84, 89, 114, 117, 119, 129, 157, 167, 215, 222, 291 Spanish Banking Association (AEB), 219, 237 Spanish banking crisis, 118, 206 Spanish banks, 68, 118, 204, 206, 217, 219 SPD, see Socialdemocratic Party of Germany SRB, see Single Resolution Board SRF, see Single Resolution Fund SRM, see Single Resolution Mechanism SSM, see Single Supervisory Mechanism Stakeholder consultation, 38, 76, 87, 106, 109, 110, 113, 117, 128, 132, 151, 153, 167, 180, 202, 232, 235, 250, 252, 254, 280, 283, 289, 296, 300 Steinbrück, Peer, 286, 287 Structural power, 8, 9, 28, 29, 31, 34–36, 83, 85, 147, 173, 246, 264, 278, 282, 283, 285, 288, 299, 301, 311, 312, 315, 318 Supranationalization, 7, 20, 23, 62, 79, 80, 101, 110, 113, 116, 119, 134, 135, 149, 157, 170, 184, 210, 218, 229, 254, 264, 313, 320 Sweden, 56n2, 58, 243 Syriza government, 247 Systemically Important Institutions, 105, 111, 130, 234, 237, 242, 245, 277, 278 T Too-big-to-fail, 128, 151, 153, 166, 167, 176, 177, 184, 237, 241, 277, 280, 282, 283, 289, 292, 294, 295, 299 Trade Unions, 31, 86, 87, 110, 238, 249, 291 Trading Book, 252, 257 Transnational banks, 12, 24, 79, 110, 155, 160, 165, 170, 175, 235, 264, 313, 315 U UBS Group, 85 UEAPME, see European Association of Craft, Small and Medium-Sized Enterprises UK, 3, 18, 19, 55, 56n2, 57–60, 63, 64, 67, 69, 72, 76, 84, 85, 89, 89n7, 90, 113, 114, 124, 127, 134, 162, 171, 197, 241–243, 245, 278–280, 283–290, 293, 297–301, 316 UniCredit, 85  INDEX  Uni Europa Finance, 249, 253 US, 3, 5, 6, 18, 54, 56, 57, 60–62, 64, 65, 69, 78, 80, 85, 88, 101, 128, 229, 234, 238, 247, 257–259, 263, 264, 277–279, 299 V Van Rompuy, Herman, 120, 121, 159, 209, 210 Varieties of capitalism, 8, 18, 34 Veneto Banca, 254 Vickers, John, 279, 281, 284, 286, 299 337 VÖB, see Association of German Public Banks Volcker, Paul, 278, 279, 291, 292 W Wholesale funding, 53, 55, 56, 66, 67 World Bank, 200 Z ZKA, see German banking industry committee (DK) .. .Competing Interest Groups and Lobbying in the Construction of the European Banking Union Giuseppe? ?Montalbano Competing Interest Groups and Lobbying in the Construction of the European Banking. .. addresses the above questions by investigating the interests and influence of the banking industry in the post-crisis regulatory reform of the EU banking governance and the overall design of the Banking. .. analysis, tracing the Banking Union? ??s development within the broader context of the EU post-crisis initiatives in banking regulation An in- depth scrutiny of the interest groups? ?? preferences and influence