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In recent years there has been an increasing concern with the fragility of the international financial system such as the stock market crash in October 1987 and the recent collapse of the real estate. Therefore, the financial stability framework plays a significant role in the economic environment. In the first place, understanding causes of the financial crisis is necessary in case of a repetition of the financial crisis. The common belief on the reasons of a financial crisis is global macro-economic imbalances and financial innovation together with failures in regulation, supervision and corporate governance. In this regard, the ECB, national central banks and supervisory authorities at EU level take an important place whether there is a micro- or macro-prudential supervision. Some alternative approaches have been evaluated for supervision in the European financial system as well. Neither separate institutions nor the integrated ones are not the key points in dealing with the financial crisis. This study focuses explicitly on the importance of the cooperation, coordination and information sharing.
About the author
Hülya Demirci graduated with a BA degree on the department of economics in Ege University. In her last year she studied in Hamburg University, the department of economics and politics as an exchange student. She earned her master degree on European Studies in Akdeniz University & Hamburg University (a joint programme).
