European Supervisory Authority and Sovereign debt crisis: Difference between pages

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(ESA).
''Sovereign debt - sovereign risk - default.''


There are three European Supervisory Authorities:
Widespread conditions of potential or actual default by indebted countries, with increased sovereign risk and losses for lenders.
#The European Banking Authority (EBA)
#The European Securities and Markets Authority (ESMA)
#The European Insurance and Occupational Pensions Authority (EIOPA)


The purpose of the ESAs is to support the efficient functioning of the European internal market by harmonising the regulation and supervision of financial markets in each member state.


:<span style="color:#4B0082">'''''Debt sustainability problems worsen over time'''''</span>


Individual supervisory authorities remain in charge of supervising individual financial institutions in their respective jurisdictions.
:"Sovereign debt crises are costly for sustained growth.
 
:One study finds that every year a country remains in default reduces its GDP growth by 1–1.5 percentage points.
 
:High levels of sovereign debt also have significant social costs.
 
:They reduce the government’s ability to spend on social safety nets and public goods such as education and public health, which can worsen inequality and human development outcomes.
 
 
:When debt sustainability problems are not resolved, they tend to worsen over time because the choices of each government constrain the options of future governments as more revenue is directed to debt service.
 
:Sovereign debt crises also frequently coincide with other types of economic crises — such as financial sector crises, rising inflation, and output collapses—that have far-reaching negative consequences for poverty and inequality."
 
:''International Monetary Fund - World Development Report 2022 - p204.''




== See also ==
== See also ==
* [[Bank of England]]
* [[Coronavirus crisis]]
* [[Bank supervision]]
* [[Default]]
* [[Basel III]]
* [[eurozone crisis]]
* [[European Banking Authority]]
* [[Forbearance]]
* [[European Central Bank]]
* [[Global Financial Crisis]]
* [[European Insurance and Occupational Pensions Authority]]
* [[Grexit]]
* [[European Securities and Markets Authority]]
* [[Gross Domestic Product]] (GDP)
* [[European System of Financial Supervision]]
* [[Inequality]]
* [[Euro zone]]
* [[Inflation]]
* [[Federal Reserve System]]
* [[International Monetary Fund]] (IMF)
* [[Financial Services Authority]]
* [[Poverty]]
* [[Financial Conduct Authority]]
* [[Public goods]]
* [[Home supervisor]]
* [[Restructuring]]
* [[Host supervisor]]
* [[Sovereign]]
* [[Internal Market]]
* [[Sovereign debt]]
* [[Prudential Regulation Authority]]
* [[Sovereign risk]]
* [[Supervisory college]]
* [[Sustainability]]
 
 
==External link==
*[https://www.worldbank.org/en/publication/wdr2022 IMF - World Development Report - 2022]
 
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 20:54, 22 September 2022

Sovereign debt - sovereign risk - default.

Widespread conditions of potential or actual default by indebted countries, with increased sovereign risk and losses for lenders.


Debt sustainability problems worsen over time
"Sovereign debt crises are costly for sustained growth.
One study finds that every year a country remains in default reduces its GDP growth by 1–1.5 percentage points.
High levels of sovereign debt also have significant social costs.
They reduce the government’s ability to spend on social safety nets and public goods such as education and public health, which can worsen inequality and human development outcomes.


When debt sustainability problems are not resolved, they tend to worsen over time because the choices of each government constrain the options of future governments as more revenue is directed to debt service.
Sovereign debt crises also frequently coincide with other types of economic crises — such as financial sector crises, rising inflation, and output collapses—that have far-reaching negative consequences for poverty and inequality."
International Monetary Fund - World Development Report 2022 - p204.


See also


External link

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