Schinasi, Garry2012-03-192012-03-192011-08-01https://hdl.handle.net/10986/3535This paper examines the financial-stability challenges that will most likely be faced by European emerging-market countries in adapting to the post-crises environment, including the new financial-stability architecture and the other remaining weaknesses revealed by the global and European crises. The paper first reviews the pre-crisis financial-stability architectures in Europe and across the globe and then identifies the key weaknesses revealed by the global crisis. It then describes the micro and macro-prudential components of the new European System of Financial Supervision and some of its design limitations (and only briefly mentions reforms designed to deal with sovereign debt problems). The paper then identifies ten key areas where there are remaining challenges of implementation and additional reforms: six areas pertaining to all countries in Europe as well as the other major financial centers and four areas more germane to emerging-market countries in Europe. In discussing these ten areas, the paper tries to differentiate the relative challenges faced by categories of emerging-market countries, and their possible links to the excessive build-up of vulnerabilities in the pre-crisis period as a potential source of lessons for policy going forward.CC BY 3.0 IGOACCOUNTINGACCOUNTING PRACTICESADEQUATE DISCLOSUREARBITRAGEAUDITINGBAILOUTBALANCE SHEETBANK FAILURESBANK FOR INTERNATIONAL SETTLEMENTSBANK REGULATIONSBANKING CRISESBANKING INDUSTRYBANKING INSTITUTIONBANKING REGULATIONSBANKING SUPERVISIONBANKING SYSTEMSBANKRUPTCYBONDBROKERSCAPITAL MARKETSCAPITAL REQUIREMENTSCAPITAL SHORTAGECENTRAL BANKCENTRAL BANK INDEPENDENCECENTRAL BANKSCHECKSCLEARING HOUSESCOLLECTIVE ACTIONCOMMERCIAL CODESCOMMON MARKETCONNECTED LENDINGCONSOLIDATED SUPERVISIONCONSOLIDATIONCORPORATE GOVERNANCECREDIT RISKCRISES MANAGEMENTCURRENCYDEBT CRISESDEBT CRISISDECENTRALIZATIONDEPOSITDEPOSIT INSURANCEDEPOSIT INSURANCE SCHEMESDEPOSITORSDERIVATIVEDERIVATIVE MARKETSDERIVATIVESDERIVATIVES MARKETSECONOMIC EFFICIENCYEMERGING MARKETEMERGING MARKET COUNTRIESEMERGING MARKETSEMERGING-MARKETEUROPEAN CENTRAL BANKEXTERNALITIESFEDERAL DEPOSIT INSURANCEFEDERAL DEPOSIT INSURANCE CORPORATIONFEDERAL RESERVEFINANCE MINISTRIESFINANCIAL CONGLOMERATESFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DISTRESSFINANCIAL INFRASTRUCTURESFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL INTEGRATIONFINANCIAL LIBERALIZATIONFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL REGULATIONFINANCIAL RISKFINANCIAL RISKSFINANCIAL SECTOR DEVELOPMENTSFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL STRUCTUREFINANCIAL SYSTEMFINANCIAL SYSTEMSFINANCING FACILITIESFISCAL BURDENFIXED EXCHANGE RATEFOREIGN BANKFOREIGN BANKSFOREIGN EXCHANGEFOREIGN EXCHANGE MARKETSFOREIGN EXCHANGE TRANSACTIONSFRAMEWORK FOR SECURITIESFRAUDFUNGIBLEGLOBAL ECONOMYGLOBAL FINANCEGLOBAL FINANCIAL SYSTEMGLOBAL MARKETGLOBAL MARKETSGLOBALIZATIONGOVERNANCE MECHANISMSGOVERNMENT BONDSGOVERNMENT INVOLVEMENTHEDGE FUNDSHOST COUNTRIESHOST COUNTRYHOUSINGINSTITUTIONAL ARCHITECTUREINSTITUTIONAL INVESTORSINSURANCEINSURANCE COMPANIESINSURANCE CORPORATIONINTEREST-RATE DERIVATIVESINTERNATIONAL BANKINTERNATIONAL SETTLEMENTSINTERNATIONAL TRADEINVESTMENT BANKSINVESTMENT STRATEGIESINVESTMENT VEHICLESINVESTOR BASEINVESTOR PROTECTIONLABOR MARKETSLAWSLEGAL AUTHORITYLEGAL PROVISIONSLEGISLATIONLEGISLATIVE FRAMEWORKLENDERLENDER OF LAST RESORTLEVEL PLAYING FIELDLEVIESLEVYLIQUIDATIONLIQUIDITYLIQUIDITY CRISISLIQUIDITY RISKSLONG-TERM CAPITALMACROECONOMIC POLICIESMANDATESMARKET COUNTRIESMARKET DISCIPLINEMARKET INFRASTRUCTURESMARKET INTEGRATIONMARKET MAKERSMARKET SURVEILLANCEMARKET TRANSPARENCYMATURITYMONETARY POLICYMONEY MARKETMONEY MARKETSMORAL SUASIONMORTGAGEMUTUAL FUNDSNATIONAL BANKSNATIONAL GUARANTEESNATIONAL SECURITIESNONBANK FINANCIAL INSTITUTIONSOFF­BALANCE SHEETPEER PRESSUREPENSIONPENSION FUNDSPENSIONSPOLICY RESPONSESPOOR LIQUIDITYPORTFOLIOSPRUDENTIAL SUPERVISIONPUBLIC DEBTPUBLIC POLICYRECAPITALIZATIONREGULATORY AUTHORITIESREGULATORY AUTHORITYREGULATORY FRAMEWORKREGULATORY PRACTICESREGULATORY STANDARDSREGULATORY STRUCTURESREGULATORY SYSTEMREPOREPO MARKETREPO MARKETSRISK CAPITALRISK DIVERSIFICATIONRISK EXPOSURESRISK MANAGEMENTRISK MANAGEMENT SYSTEMSRISK TAKINGRULE OF LAWSAFETY NETSAVINGSSECURITIESSECURITIES ISSUANCESECURITIES MARKETSSECURITIES REGULATIONSECURITIES REGULATIONSSETTLEMENTSETTLEMENT PROCEDURESOLVENCYSOVEREIGN DEBTSOVEREIGN DEBT PROBLEMSSOVEREIGN DEFAULTSUBSIDIARYSUPERVISORY AUTHORITIESSUPERVISORY AUTHORITYSUPERVISORY FRAMEWORKSUPERVISORY POWERSSURCHARGESSWAPSSYSTEMIC RISKSYSTEMIC RISKSTAXTAXATIONTRADINGTRANSITION COUNTRIESTREASURIESTREASURYTREATIESTREATYTURNOVERVAR MODELSWorld Bank10.1596/1813-9450-5773