Bank supervision between risk reduction and economic renewal

Shawn Donnelly*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

1 Citation (Scopus)
29 Downloads (Pure)


This paper investigates specific challenges of Covid for balancing economic growth and financial stability as they apply to paradigms, programmes and policies of bank regulation and supervision at the European Commission and European Central Bank. It finds that dominant paradigms of risk reduction and control remained intact, despite a temporary programme of regulatory relaxation to spur credit growth. The ECB and the Commission were united on state aid, regulatory loosening and promoting credit creation. However, while the Commission sought credit for businesses, much of the credit went into the European housing sector, with ECB support.

Original languageEnglish
Pages (from-to)59-77
Number of pages19
JournalJournal of European Integration
Issue number1
Publication statusPublished - 16 Mar 2023


  • bank supervision
  • Banking Union
  • credit creation
  • economy
  • state aid
  • UT-Hybrid-D


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