Tag: eurozone debt crisis

What is the EU Banking Reforms all about

What is the EU Banking Reforms all about

Financial Markets Explained
The EU banking reforms has been one of the highly discussed topics in recent months and gained even more prominence as the Eurozone countries seem to be split on the issue. In this article, we discuss what is the EU banking reforms and the proposed changes to the banking sector in the Eurozone. The EU Banking reforms, is a loosely coined term for what is known as the Single Supervisory Mechanism. The financial crisis in Eurozone has brought to light many cracks within the banking sector in the region which set the stage for the proposed reforms with an aim to create uniformity in the banking sector in Eurozone. The Single Supervisory Mechanism or SSM for short is being proposed, where in the European Central Bank (the ECB) will assume ultimate supervisory responsibilities for t
What is EFSF – European Financial Stability Fund

What is EFSF – European Financial Stability Fund

Financial Markets Explained
The EFSF, European Financial Stability fund was founded in May 2010 with the objective to act as a bank (although EFSF does not operate as a bank) to provide financial assistance to the Eurozone member countries that use the Euro as their currency. The purpose of the EFSF was to safeguard the financial stability in the Eurozone and does this by offering financial aid to the Eurozone member states. Set up as a rescue fund, the EFSF is used to combat the regional sovereign debt crisis. The EFSF was set up after a unanimous agreement by 27 member states which authorizes the EFSF to borrow up to €440 billion, which was later increased to €780 billion in July 2011. The EFSF is operates from Luxembourg and has its own CEO, Klaus Regling, a board of directors comprising of high level ex