Changes, risks and policies in the financial area
Rapid changes in climate, technology, and digitalisation are transforming our lives and the European economy. These changes bring significant challenges to the financial industry and, if not addressed, could threaten Europe’s economic stability and its citizens’ savings.
To prevent these risks, we use advanced research to anticipate and understand the financial sector’s potential hazards. This understanding is essential for maintaining long-term financial stability and safeguarding the economic well-being of all EU citizens.
Better policies means better life for everybody. And in a changing world, policies have to adapt fast. Our work also includes assessing the impact of new regulations on the financial system. By doing this, we help policymakers develop effective, evidence-based solutions that protect the European economy and its citizens now and in the future. Below, some examples of our work.
In Focus
A well-designed digital euro would avoid risks for financial stability and banks’ profitability
A proper design matters. Models suggest that introducing a cap on digital euro holdings would preserve financial stability, banks’ profitability, and produce small changes in the response of the economy to macroeconomic shocks.
Preserving citizens’ economic well-being: evaluating risks and policy solutions for climate change, digitalisation, and biodiversity loss financial-related threats
By researching and anticipating financial risks, a team of few scientists assesses the financial challenges posed by climate change, digitalization and biodiversity loss. Today, we spoke with them to learn more about their research.
Handling bank failures: JRC research feeds into proposal for revised CMDI framework
The proposal improves the rules for handling bank failures, while preserving financial stability, protecting depositors, and further limiting the use of public financial resources.
Published research
Central bank digital currency and European banks’ balance sheets
Scientific report
Bank profitability and central bank digital currency
Scientific report
