The proposals are based on the recent annual report of the German Council of Economic Experts, to which Wieland also belongs. In this context, he recommended clear rules for orderly government debt restructuring that should be added to the ESM's tools of macroeconomic adjustment programs. Another important aspect, in Wieland's opinion, is loosening the nexus between banks and sovereigns. The privileges for sovereign exposures in banking regulation have to be abolished.
According to Wieland, the gaps in banking regulations primarily consist in bank resolution and the high level of non-performing loans. The leverage ratio should be at 5 per cent.
Börsen-Zeitung: "Bankenaufseher in der Rolle des Bankenanwalts"