IA Report: Proposal for a Directive on a common system of financial transaction tax and amending Directive 2008/7/EC

Type of practice:

The QUEST Model (http://ec.europa.eu/economy_finance/research/macroeconomic_models_en.htm) is used to assess the macroeconomic impacts of policy changes. The SYMBOL Model (http://ec.europa.eu/dgs/jrc/downloads/events/20121108-financial-stability/jrc_20121108_financial_stability_s1_campolongo.pdf) is used to estimate the probability and magnitude of systemic losses deriving from banks' defaults, explicitly taking into account the effects of Basel capital requirements, Deposit Guarantee Schemes (DGS) and bank Resolution Funds (RF). SYMBOL also provides results for the contribution of individual banks to the risk of the banking sector as a whole, both in the case where contagion effects are controlled fully by DGS/RF (and the associated crisis management tools) and in the case when these tools are not completely effective in managing the effects of banking defaults. The corresponding IA Report (http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=SWD:2012:0166:FIN:EN:PDF) gives an account of these applications.

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