Global pandemic crisis and financial stability

The COVID-19 crisis has significant effects on many banks in the Banking Union and multiple impacts on the capital markets side. While there are widespread interventions targeted to ensure that the banking sector maintains credit flowing to the economy and citizens without undermining its overall soundness, there also sign of intensification of regulatory intervention on the financial markets. Among other developments to monitor in the current crisis, there is the interplay between the banking regulation and the capital markets legislation. In this chapter, we wish to focus on some recent developments affecting the supervision and regulation of the EU capital markets having an impact on banks and other financial institutions.