The End of Banking Secrecy in Post-Crisis Economics- First Step. Cover Image

The End of Banking Secrecy in Post-Crisis Economics- First Step.
The End of Banking Secrecy in Post-Crisis Economics- First Step.

Coty Germany and HSBC Swiss Cases

Author(s): Carmen Adriana Gheorghe
Subject(s): Civil Law, Economic policy
Published by: Editura Lumen, Asociatia Lumen
Keywords: bank secret; CJEU; right of information; bank data exchange agreements; risk

Summary/Abstract: Inequality, distribution and growth are important topics in modern post- crisis economics and their interconnections are a favorite subject of economists and international and national institutions. There is strong evidence also that the end of banking secrecy wasn’t a real priority for authorities. On the other hand, unfairness generates economic and political instability that reduces investment and therefore growth. Economic contrast impedes the social consensus necessary to absorb shocks and sustain growth. In this context, what positions should the effects of money laundering and tax evasion, as a result of banking secrecy, occupy? What is the reason for not including banking secrecy among the causes for instability, inequity and, consequently, crisis? Two recent cases have prompted the adoption of measures on banking secrecy in the E.U. – the Coty dispute between Germany and a German bank (more specifically, the interpretation forwarded by CJUE) and the HSBC Swiss bank secret accounts scandal (respectively, the deal on bank accounts between E.U. institutions and Swiss banks). Currently, the Romanian economy is characterized by macroeconomic balance and microeconomic tensions – the GDP distribution in economy is inadequate. The disciplined (individuals and legal entities who comply with the law) are tense, the reason being that they do not experience economic growth. Many distribution added value channels are clogged by the indiscipline of other individuals and legal entities. The undisciplined are relaxed, because they acquire and unreasonably large part of the added value in the economy.

  • Issue Year: IV/2015
  • Issue No: 1
  • Page Range: 31-39
  • Page Count: 9
  • Language: English