G00 - Financial Economics: GeneralReturn

There are mainly three possible options of the future developments in the financial supervisory framework of the EU: (1) the status quo with the possible partial modifications; (2) to create a specific regime for cross-border financial groups, or (3) creation of the European Supervision System along the lines of the European System of Central Banks. In terms of long-term development of financial markets and supervisory framework needs the third option presents the most suitable solution. However, due to the fact that its practical implementation is limited by a number of key assumptions and conditions, without their prior fulfillment the creation of such a system would be irresponsible decision. As we can see on the example of the euro area, risks associated with potential costs would far outweigh the expected benefits.