Zdenek Kudrna | Austrian Academy of Sciences (original) (raw)

Papers by Zdenek Kudrna

Abstract: This book summarizes the history of the second largest Czech bank–Investiční a Pošto... more Abstract: This book summarizes the history of the second largest Czech bank–Investiční a Poštovní Banka (IPB)–from its humble beginnings in 1990 through aggressive expansion to a spectacular failure in 2000. It is a story of unsustainable expansion amid the uncertain environment of transition economy, compounded by costly attempt of IPB's management to gain ownership control over the bank-so called privatization by incest-engineered via sophisticated furtive transactions.

This paper compares the bank regulatory regimes in the enlarged European Union in order to test t... more This paper compares the bank regulatory regimes in the enlarged European Union in order to test the thesis claiming that international banking standards need to be adapted to emerging market circumstances. On the basis of World Bank surveys, we compile structural indices for the 10 post-communist EU members (emerging markets) as well as 17 advanced EU economies and compare them using Bayesian statistical procedures.

Tato studie prezentuje pět indikátorů používaných pro měření kvality podnikatelského prostředí ve... more Tato studie prezentuje pět indikátorů používaných pro měření kvality podnikatelského prostředí ve visegrádských zemích a shrnuje jejich výsledky. Jedná se o index vnímání korupce, agregátní indikátory správy, index zajetí (státu), index neprůhlednosti a index rizika správy akciových společností.

The financial crisis renewed attention to risks disregarded during boom years, including politica... more The financial crisis renewed attention to risks disregarded during boom years, including political risks stemming from transnational banking within the EU. The need to distribute crisis-related losses prompted authorities in Hungary, Austria, Romania and Latvia to consider unilateral policies that seemed unacceptable before the crisis and that dramatically increased political risks associated with foreign direct investments into banking.

Abstract The post-2007 financial crisis created an opportunity for reforms that could close the r... more Abstract The post-2007 financial crisis created an opportunity for reforms that could close the regulatory gap between transnational banks and national bank resolution regimes. During the decade before the crisis, the European Union tried to develop a cross-border bank resolution regime relying on voluntary agreements and complex governance networks. However, these arrangements failed to commit national authorities to multilateral resolution as was exemplified by the case of Fortis.

The transaction cost analysis provides a framework for comparison of effectiveness of different g... more The transaction cost analysis provides a framework for comparison of effectiveness of different governance structures in mitigating contractual risks that may prevent contracts to be agreed upon and/or consummated successfully. A prior comparison of transaction cost efficiency of governance structures, allows for subsequent testing of the effect of different governance mechanisms on policy-relevant outcomes.

Page 1. DELEGATING CONTESTED REFORMS OF EU FINANCIAL MARKET REGULATION By Zdenek Kudrna Submitted... more Page 1. DELEGATING CONTESTED REFORMS OF EU FINANCIAL MARKET REGULATION By Zdenek Kudrna Submitted to Central European University Department of International Relations and European Studies In partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY Supervisor: Professor Laszló Csaba (Word count: 77,700) Budapest, Hungary August 31, 2011 Page 2.

This paper discusses the impact of the recent financial crisis on the relationship between the do... more This paper discusses the impact of the recent financial crisis on the relationship between the domestic authorities of new member states and the foreign banks that dominate their financial sectors. Foreign banks played an adverse role during the unsustainable pre-crisis credit booms that rendered certain EU10 economies very vulnerable to crisis.

Účelem tohoto materiálu je přispět do diskuse na úrovni ekonomické politiky státu a upozornit na ... more Účelem tohoto materiálu je přispět do diskuse na úrovni ekonomické politiky státu a upozornit na alternativy a nástroje řízení v oblasti konkurenční schopnosti české ekonomiky. Jedná se o podklady pro širší komplexní text–“Národní vize rozvoje ČR”, který bude v červnu Radou vlády vypracován jako strategie českého dlouhodobého sociálního a ekonomického rozvoje. Připraveno na základě podkladů z diskuse účastníků seminářů Rady vlády ČR pro sociální a ekonomickou strategii z 23.3. a 27.4. 2000 1

Abstract This paper analyzes the reasons for the failure of the multilateral resolution of EU cro... more Abstract This paper analyzes the reasons for the failure of the multilateral resolution of EU cross-border banks such as Fortis. We argue that the pre-crisis regime based on soft law and voluntary coordination was unable to align the incentives of national authorities acting under the time pressure and uncertainty of a banking crisis. We ask whether this experience induced the Commission to propose reforms that would close the regulatory gap between integrated crossborder banks and national resolution regimes.

euce.org

This paper analyzes the EU experience with the cross-border banking failures during the crisis an... more This paper analyzes the EU experience with the cross-border banking failures during the crisis and evaluates the post-crisis reform proposals in the light of this experience. It shows that the Commission considered substantive reforms that would shift the crossborder bank resolution regime to the EU level to match the operational presence of pan-European banks. However, the political compromises on the European System of Financial Supervisors in the Council, led the Commission to withdraw from more ambitious proposals in favor of gradual improvements of the pre-crisis status quo. The reformed structures are still too complex to be functional in real-time under the pressure of a financial crisis and they leave too many crucial issues such as sharing of information and of fiscal burdens in the domain of non-binding soft law agreements yet to be prepared by supervisory colleges. The new framework does not change the exclusively national accountability of supervisory authorities, thus the new regime is unlikely to prevent non-cooperative resolution strategies.

Working Papers of the Vienna Institute for European …, Jan 1, 2010

Abstract: The response to failures of transnational banks within the European Union (EU) has been... more Abstract: The response to failures of transnational banks within the European Union (EU) has been distinctly national. The EU institutional framework for cross-border bank resolution proved too weak to sustain coordination and prevent open intergovernmental conflicts. This paper summarizes reasons for this failure and reviews structural, political and legal constraints restraining acceptability of various reform alternatives within the EU. The first-best solution would be either a development of an EU-level bank resolution regime for ...

Post-Communist Economies, Jan 1, 2005

Union. It shows that the regulatory framework for the single market in financial services has pro... more Union. It shows that the regulatory framework for the single market in financial services has progressed in stages reflecting the evolution of EU policy-modes; from market opening to attempts at harmonization, to reliance on mutual recognition. The slow progress induced the EU to innovate its decision-making processes by introducing the Lamfalussy procedure in 2001.

Merit Research Working ePaper No. l, Jan 1, 2002

Abstract: This book summarizes the history of the second largest Czech bank–Investiční a Pošto... more Abstract: This book summarizes the history of the second largest Czech bank–Investiční a Poštovní Banka (IPB)–from its humble beginnings in 1990 through aggressive expansion to a spectacular failure in 2000. It is a story of unsustainable expansion amid the uncertain environment of transition economy, compounded by costly attempt of IPB's management to gain ownership control over the bank-so called privatization by incest-engineered via sophisticated furtive transactions.

This paper compares the bank regulatory regimes in the enlarged European Union in order to test t... more This paper compares the bank regulatory regimes in the enlarged European Union in order to test the thesis claiming that international banking standards need to be adapted to emerging market circumstances. On the basis of World Bank surveys, we compile structural indices for the 10 post-communist EU members (emerging markets) as well as 17 advanced EU economies and compare them using Bayesian statistical procedures.

Tato studie prezentuje pět indikátorů používaných pro měření kvality podnikatelského prostředí ve... more Tato studie prezentuje pět indikátorů používaných pro měření kvality podnikatelského prostředí ve visegrádských zemích a shrnuje jejich výsledky. Jedná se o index vnímání korupce, agregátní indikátory správy, index zajetí (státu), index neprůhlednosti a index rizika správy akciových společností.

The financial crisis renewed attention to risks disregarded during boom years, including politica... more The financial crisis renewed attention to risks disregarded during boom years, including political risks stemming from transnational banking within the EU. The need to distribute crisis-related losses prompted authorities in Hungary, Austria, Romania and Latvia to consider unilateral policies that seemed unacceptable before the crisis and that dramatically increased political risks associated with foreign direct investments into banking.

Abstract The post-2007 financial crisis created an opportunity for reforms that could close the r... more Abstract The post-2007 financial crisis created an opportunity for reforms that could close the regulatory gap between transnational banks and national bank resolution regimes. During the decade before the crisis, the European Union tried to develop a cross-border bank resolution regime relying on voluntary agreements and complex governance networks. However, these arrangements failed to commit national authorities to multilateral resolution as was exemplified by the case of Fortis.

The transaction cost analysis provides a framework for comparison of effectiveness of different g... more The transaction cost analysis provides a framework for comparison of effectiveness of different governance structures in mitigating contractual risks that may prevent contracts to be agreed upon and/or consummated successfully. A prior comparison of transaction cost efficiency of governance structures, allows for subsequent testing of the effect of different governance mechanisms on policy-relevant outcomes.

Page 1. DELEGATING CONTESTED REFORMS OF EU FINANCIAL MARKET REGULATION By Zdenek Kudrna Submitted... more Page 1. DELEGATING CONTESTED REFORMS OF EU FINANCIAL MARKET REGULATION By Zdenek Kudrna Submitted to Central European University Department of International Relations and European Studies In partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY Supervisor: Professor Laszló Csaba (Word count: 77,700) Budapest, Hungary August 31, 2011 Page 2.

This paper discusses the impact of the recent financial crisis on the relationship between the do... more This paper discusses the impact of the recent financial crisis on the relationship between the domestic authorities of new member states and the foreign banks that dominate their financial sectors. Foreign banks played an adverse role during the unsustainable pre-crisis credit booms that rendered certain EU10 economies very vulnerable to crisis.

Účelem tohoto materiálu je přispět do diskuse na úrovni ekonomické politiky státu a upozornit na ... more Účelem tohoto materiálu je přispět do diskuse na úrovni ekonomické politiky státu a upozornit na alternativy a nástroje řízení v oblasti konkurenční schopnosti české ekonomiky. Jedná se o podklady pro širší komplexní text–“Národní vize rozvoje ČR”, který bude v červnu Radou vlády vypracován jako strategie českého dlouhodobého sociálního a ekonomického rozvoje. Připraveno na základě podkladů z diskuse účastníků seminářů Rady vlády ČR pro sociální a ekonomickou strategii z 23.3. a 27.4. 2000 1

Abstract This paper analyzes the reasons for the failure of the multilateral resolution of EU cro... more Abstract This paper analyzes the reasons for the failure of the multilateral resolution of EU cross-border banks such as Fortis. We argue that the pre-crisis regime based on soft law and voluntary coordination was unable to align the incentives of national authorities acting under the time pressure and uncertainty of a banking crisis. We ask whether this experience induced the Commission to propose reforms that would close the regulatory gap between integrated crossborder banks and national resolution regimes.

euce.org

This paper analyzes the EU experience with the cross-border banking failures during the crisis an... more This paper analyzes the EU experience with the cross-border banking failures during the crisis and evaluates the post-crisis reform proposals in the light of this experience. It shows that the Commission considered substantive reforms that would shift the crossborder bank resolution regime to the EU level to match the operational presence of pan-European banks. However, the political compromises on the European System of Financial Supervisors in the Council, led the Commission to withdraw from more ambitious proposals in favor of gradual improvements of the pre-crisis status quo. The reformed structures are still too complex to be functional in real-time under the pressure of a financial crisis and they leave too many crucial issues such as sharing of information and of fiscal burdens in the domain of non-binding soft law agreements yet to be prepared by supervisory colleges. The new framework does not change the exclusively national accountability of supervisory authorities, thus the new regime is unlikely to prevent non-cooperative resolution strategies.

Working Papers of the Vienna Institute for European …, Jan 1, 2010

Abstract: The response to failures of transnational banks within the European Union (EU) has been... more Abstract: The response to failures of transnational banks within the European Union (EU) has been distinctly national. The EU institutional framework for cross-border bank resolution proved too weak to sustain coordination and prevent open intergovernmental conflicts. This paper summarizes reasons for this failure and reviews structural, political and legal constraints restraining acceptability of various reform alternatives within the EU. The first-best solution would be either a development of an EU-level bank resolution regime for ...

Post-Communist Economies, Jan 1, 2005

Union. It shows that the regulatory framework for the single market in financial services has pro... more Union. It shows that the regulatory framework for the single market in financial services has progressed in stages reflecting the evolution of EU policy-modes; from market opening to attempts at harmonization, to reliance on mutual recognition. The slow progress induced the EU to innovate its decision-making processes by introducing the Lamfalussy procedure in 2001.

Merit Research Working ePaper No. l, Jan 1, 2002