The EU financial sector currently lacks financial transparency, and this has become not better but worse over the last three years, so say three researchers in economics and governance in a joint blog post.
This is worrying, because the further successful integration of the EU financial sector requires financial market participants and the public to be able to access information on banks' activities and health across borders.
Comparing supervisory transparency — i.e. the publication by supervisors of data about the institutions they supervise — in early 2016 to a previous survey made in 2013, the authors found that in the EU the already low level of transparency has actually deteriorated. They urge supervisory authorities, including the European Central Bank (ECB), to dramatically step up their efforts to provide the public with more information about Europe's banking sector.
According to the authors, more supervisory transparency leads to more financial stability, facilitates contestability and mergers, and allows parliaments and the public to better judge supervisors' performance.