87522 - Advanced Banking Regulation and Central Banking

Learning outcomes

This course studies the legal foundations of the European System of Central Banks (ESCB) and the ECB mandate of monetary policy also in comparison with the Federal Reserve system and central banking in other relevant jurisdictions. Conventional and unconventional monetary policy instruments are considered in depth, also in light of relevant CJEU case law. Macroprudential supervision, lending of last resort and remits over financial stability are discussed in all their institutional and legal implications.

Course contents

Advanced Banking Regulation: selected topics from the Single Rule Book

Banking authorisations and the withdrawals of banking licenses. Substantive and procedural requirements. The relevant case law of the CJEU: Cases T‑351/18 and T‑584/18, Ukrselhosprom PCF LLC, Versobank AS v ECB.

Quantitative Capital Requirements: An analytical consideration of CET1, AT1, T2, and of the additional capital buffers. (I)

The relevant case law of the CJEU: cases T-576/18 Crédit Agricole v ECB and T-577/18 Crédit Agricole Corporate and Investment Bank v. ECB and T-578/18, CA Consumer Finance v ECB; on appeal, C-456/20.

The acquisition of qualifying holdings: substantive and procedural requirements.

The relevant case law of the CJEU. The Fininvest and Berlusconi case before the CJEU.

Close cooperation within the SSM and its judicial review.

Quantitative Capital Requirements: An analytical consideration of CET1, AT1, T2, and of the additional capital buffers. (II) Qualitative Capital Requirements: Pillar 2 requirement and guidance. ICAAP and SREP.

Fit and proper assessment of members of the management bodies and key functions holders as a fundamental component of good governance for banks. The European and Italian framework. Substantive and procedural aspects.

The relevant case law of the CJEU: T-133/16 Caisse régionale de credit agricole mutuel Alpes Provence v. ECB.

The construction of the Total Risk Exposure Amount and its relation with capital requirements.

The challenges of the greening of the law of finance.

Solo, consolidated and supplementary supervision. The challenges posed by the banking group. What’s new after CRD V and CRR 2. Daisy chain and 2021 Banking package proposals.

The final backstop: the ESM.

Central bodies and prudential regulation: the Arkéa case

Leverage ratio and the Livret A cases

 

Fundamentals on Central Banks mandates and operations and the implementation of the Eurosystem monetary policy framework

Basic concepts (money, legal tender – Opinion AG Pitruzzella in Joined Cases C‑422/19 and C‑423/19 Hessische Rundfunk)) Treaty provisions on euro and ESCB ECB governance, independence and accountability; the Rimšēvičs case. Conventional and unconventional monetary policy: the legal framework. The ECB monetary policy guidelines. The greening of monetary policy.

Judicial review of monetary policy: from Pringle to Gauweiler to Weiss.

Readings/Bibliography

A reading list shall be provided at the beginning of the course.

Teaching methods

Lectures with slides available on Virtuale. The use of these materials in study and preparation for examination is to be considered as complementary and not substitute for the use of the manuals indicated.

Seminars with high level experts.

Assessment methods

Oral exam.

18-23: the student has sufficient preparation and analytical skills, spread however, over just few topics taught in the course, the overall jargon is correct

24-27: the student shows and adequate preparation at a technical level with some doubts over the topics. Good, yet not to articulate analytical skills with the use of a correct jargon

28-30: Great knowledge about most of the topics taught in the course, good critical and analytical skills, good usage of the specific jargon

30L: excellent and in depth knowledge of all the topics in the course, excellent critical and analytical skills, excellent usage of specific jargon.

To subscribe to the exam, you must sign up using the AlmaEsami application, with due regard for the deadlines provided. Those who failed to sign up by the due date are required to report in a timely manner (and in any case before the official closing of the enrollment lists) the problem with the teaching secretariat.

Teaching tools

Slides and materials available on Virtuale.

Office hours

See the website of Marco Lamandini

See the website of Giorgio Buono