О решении Федерального конституционного суда Германии по программе выкупа государственных облигаций Европейским центральным банком

In a highly controversial decision, the German Federal Constitutional Court (FCC) decided that the Public Sector Purchase Program (PSPP) of the European Central Bank (ECB) was ultra vires because it violated the principle of proportionality. The FCC took a procedural approach to proportionality, finding that the ECB had failed to substantiate its balancing assessment. Therefore, the Court considered itself unable to review whether PSPP was substantively proportionate, but announced that it might do so in a future case. The judgment raises the fundamental question of how courts should review monetary policy. The article begins by exploring the role of central banks between independence and accountability. Then, it analyzes, in three steps, what role the principle of proportionality should play in the realm of monetary policy. First, I argue that a traditional substantive balancing test as part of proportionality review is not applicable to monetary policy decisions and highlight the pitfalls of the FCC’s approach. Second, I claim that the imposed procedural “duty to substantiate” is not suitable to promote the democratic accountability of the ECB. Third, I contend that, therefore, the PSPP ruling creates an impetus for strengthening the ECB’s supranational accountability. I suggest that improving the monetary dialogue with the EU Parliament and establishing a comprehensive transparency regime for the ECB could further this goal. Ultimately, I propose that a narrow reading of the PSPP ruling could reconcile the current conflict between the FCC and the ECB and still provide a sufficient level of judicial accountability for the ECB’s monetary policy-making.

In its judgment of May 5, 2020, the Second Senate of the German Constitutional Court qualified for the first time a judgment of the Court of Justice of the European Union (CJEU)—C-493/17 Weiss—as “arbitrary from an objective perspective” and declared the underlying European Central Bank (ECB) decisions regarding the Public Sector Purchase Programme (PSPP) to be ultra vires. It requested the German Government and the German Parliament to take steps against the PSPP in its current form and to ensure that the ECB conducts a proportionality assessment of its PSPP. The judgment also prohibits the German Central Bank from participating, after a grace period of three months, in the implementation and execution of the ECB decisions at issue, unless the ECB assesses and substantiates that the measures provided for in its decisions satisfy the principle of proportionality. The present article, which was written by academics, lawyers, and civil servants from five countries, casts a critical eye on the judgment of the German Constitutional Court. It identifies significant shortcomings from both a German constitutional and a European Union perspective.

Chapter 7 discusses the German Federal Constitutional Court’s (GFCC) judgment on the European Central Bank’s Public Sector Purchase Programme (PSPP) and its repercussions in the context of the EU’s response to the Covid-19 pandemic. As the GFCC’s first ever ultra vires judgment, the PSPP ruling is a sign that the tension between the GFCC’s case law and the course of European integration has become increasingly untenable. Yet, despite this significant escalation, the chapter shows how the weak remedy left addressing the constitutional concern to Germany’s elected politicians. Such weak review lets national constitutional courts signal constitutional problems, but leaves their resolution to the political branches, which is welcome from a democratic perspective. In addition, and unlike during the euro crisis, elected politicians openly criticized the GFCC’s case law. Still, the GFCC’s case law continues to influence the development of European integration, visible in the legal design of Next Generation EU.

The impact of digitalization on the public and private banking sectors of India has been transformed. The digital revolution, accelerated by advancements in technology and government initiatives, has redefined banking practices and services across the country. In the public banking sector, digitalization has played a crucial role in enhancing accessibility and convenience for a vast and diverse customer base. Initiatives such as the Pradhan Mantri Jan Dhan Yojana (PMJDY) and the implementation of Aadhaar-linked banking have significantly increased the penetration of banking services into rural and underserved areas. Digital platforms have enabled public banks to streamline operations, reduce costs, and offer a wider range of services, including online account management, digital payments, and mobile banking. This shift has not only improved operational efficiency but also enhanced customer satisfaction by providing seamless and efficient banking experiences. The private banking sector, with its more agile structure, has rapidly adopted digital innovations to stay competitive and meet evolving customer expectations. Private banks have leveraged technologies such as artificial intelligence, machine learning, blockchain, and big data analytics to offer personalized banking services, improve risk management, and enhance security.

In March 2008, the German Federal Constitutional Court (GFCC) has passed an important, even though preliminary, decision concerning data retention.The GFCC's decision accepts the storage of data, but greatly restricts their use to serious offenses like murder and organized crime.From an ethical point of view, it is particularly interesting to look at the justification given by the GFCC, which relies heavily on the argument that the "impartiality" (Unbefangenheit) of communication will be thoroughly damaged if feelings of being watched spread in a society.This argument is examined in view of two contrasting theoretical approaches: Discourse ethics and evolutionary contractarian theory.

Quantitative easing in the Euro Area – An event study approach

The BVerfG's Proportionality Review in the PSPP Judgment and its Link to Ultra Vires and Constitutional Core: Solange Babel's Tower Has Not Been Finalised

Green banking is a concept that refers to practices and principles that make financial institutions profitable, environmentally friendly and healthy. Its aim is to make banking processes and the use of IT and physical infrastructure as efficient and effective as possible with zero or minimal impact on the environment. Green banks are developing technology in the banking sector, increasing efficiency and changing the customer experience. This is a smart and thoughtful way with a vision for the future. Banking operations are not physically dependent on the environment, but are driven by external influences on the core activities of customers. Green banks are different from conventional banks. Their main aim is to promote environment friendly businesses. Green banking refers to banking operations that are compatible with reducing internal and external carbon emissions. The aim of this study is to understand the use of green products in the banking sector and to analyze the green financial measures adopted by government and private banks. The study is based on primary data collected by 136 respondents from various public and private banks in Uttar Pradesh. The study revealed no correlation between various measures taken by private and public sector banks in implementing green finance. The study also disclosed that private and public sector companies are relying less on banking solutions and are using e-waste management to implement good environmental practices. The study presented that 100% of public and private banks use internet and mobile banking. The main aim of green banking is to minimize customer time and costs and impact the principles of sustainability, ethical lending, maintenance and energy efficiency.

Non-Performing Assets (NPAs) serve as a crucial measure of the financial stability and operational efficiency of the banks. The volume of NPAs is significant because it assesses the overall soundness of the banking system. In Indian context, ownership significantly explains the extent of NPAs. Accordingly, the present study is carried out to focus on the comparative analysis of NPAs in public and private sector banks in India based on key financial ratios. For this study, a sample of six banks, comprising three public banks (BOB, PNB, and SBI) and three private banks (AXIS, HDFC, and ICICI), is selected based on their market capitalization. The study utilizes the secondary data over an 11-year span, covering the period from 2014 to 2024. The research is quantitative in nature. To examine the data, descriptive statistics is used to summarize the data; Welch test and post-hoc (Games Howell) test are used to assess the bank differences. The analysis highlights that public banks have higher fluctuation in NPA ratios than private banks. Out of public banks, PNB shows more NPAs, whereas in private banks, ICICI Bank has higher NPAs in all years

This study analyzes trends in the Eurosystem’s rules and country allocations of the Public Sector Purchase Program (PSPP) and the Pandemic Emergency Purchase Program (PEPP). The synopsis of purchase rules reveals how the ECB Council has loosened the initially strict constraints over time and various dimensions. For the year 2020, the analysis shows that the divergences of net purchases from the ECB capital key are substantive. The analysis of the PSPP stocks since 2015 illustrates that this increasing divergence from the capital key was on its way already before the pandemic. A final step of the analysis puts the PSPP/PEPP net purchases in proportion to current fiscal indicators. These results prove that, for several euro countries, the central bank net purchases fully match even the exceptionally high borrowing requirements of 2020. The study concludes with reflections on the challenges for a program exit after the end of the pandemic.

Public and commercial banks in India are leading the way in green banking's use of artificial intelligence (AI), which is changing the way the financial industry views sustainability. This review examines how AI-driven technologies contribute to environmental responsibility, enhance operational efficiency, and promote sustainable practices within banking institutions. AI applications such as predictive analytics, blockchain for secure transactions, and data-driven decision-making are increasingly enabling banks to minimize environmental impact, reduce paper usage, and optimize energy consumption. Public sector banks, driven by governmental mandates, are adopting green banking practices to align with India's sustainability goals, while private banks are leveraging AI innovations to gain competitive advantage and meet consumer demand for eco-friendly services. The paper highlights the comparative impact of AI in green initiatives across both sectors and provides insights into the review underscores the importance of policy support, digital infrastructure, and collaborative efforts for AI-enabled green banking to foster a sustainable future in the Indian banking sector.

Corporate governance plays a critical role in ensuring transparency, accountability, and efficiency in the banking sector. This study conducts a comparative analysis of corporate governance practices in public and private sector banks in India using secondary data from Reserve Bank of India (RBI) reports. Key governance parameters such as board composition, audit committee structure, transparency measures, and financial performance indicators—including Return on Assets (ROA), Return on Equity (ROE), and Non-Performing Assets (NPAs)—are examined. To evaluate the statistical significance of governance differences between public and private banks, t-tests, ANOVA, and correlation analysis are conducted. The findings reveal whether structural and regulatory variations impact governance effectiveness and financial stability across banking sectors. The study provides insights into the strengths and challenges of corporate governance frameworks in Indian banks, offering policy recommendations for enhancing governance standards to ensure long-term banking sector sustainability. Keywords: Corporate Governance, Public Sector Banks, Private Sector Banks, RBI, Board Composition, Audit Committee, Transparency, t-test

When choosing online financial transactions, security is a paramount concern of users. Three categories of banks in India, namely public, private and foreign banks, have a completely different focus on technology and capabilities. The study aims at investigating e-banking users’ perception with regard to online risk for public, private and foreign banks. Online risk perception for the abovementioned banks was assessed on three major risk parameters, i.e. security aspect, privacy aspect, and trust; using a multiple-criteria decision-making tool, called the Analytical Hierarchy Process (AHP). The outcomes indicate that security risk is paramount among various aspects of perceived risk, followed by privacy and trust concern. Moreover, public sector banks are perceived to be the safest in this aspect. Public sector banks are also considered to be benign in terms of privacy and trust. Given the general user’s perception of risk generated by all the three risk parameters taken together, public sector banks are perceived to be the most secure, followed by private and foreign banks. The findings of this study have various implications for both research and practice. Private and foreign banks in India may adopt appropriate marketing strategies to achieve a favorable perception. Various studies have been conducted earlier on these factors and their interrelationship, but limited research has been carried out to demonstrate the importance of each of these factors in relation to the other as perceived by the user. Moreover, the study quantifies factors in order of their importance.

This study made an attempt to find out the relationship between managerial effectiveness and emotional intelligence of branch managers of public sector banks like state Bank of India, Punjab National bank and Indian Bank in the district of Kolkata, West Bengal. The sample consists of 174 branch managers. Stratified random sampling method is used. The data collected through standard structure questionnaire named as Managerial Effectiveness Scale developed by Prof. S. Gupta (1996) and “Emotional Intelligence Test Scale developed by Dr. N. K. Chadha and Dr. D. Singh (2001) was administered. The five hypotheses formulated in the study are tested using appropriate statistical tests like Mean, S. D., t test, ANOVA, correlation and regression analysis to assess the managerial effectiveness of public banks branch managers with respect to emotional intelligence. The results revealed that there is no significance mean difference within the public banks (SBI, PNB, and IB). The result also exhibits that managerial effectiveness is positively correlated with the emotional intelligence and managers having high level of emotional intelligence are more effective than managers having low level of emotional intelligence. It is conclude from the results that emotional intelligence is a significant predictor of managerial effectiveness of branch managers in public sector banks. KEYWORDS: Managerial Effectiveness, Emotional Intelligence, Branch Managers, Public Banks. Kolkata.

The widespread consensus is that artificial intelligence is the ability of robots to mimic human intelligence by performing activities that are similar to those of humans. The contemporary environment, which is marked by a sharp growth in AI use, highlights the technology’s expanding importance. Two fundamental ideas form the basis of AI’s operational framework. Firstly, there is an emphasis on understanding the mechanisms of the human brain and grasping its cognitive processes. Subsequently, these insights are practically implemented by applying machine learning methodologies. This research study investigates customer perspectives on integrating AI within the Banking Industry. To achieve this objective, participants were specifically chosen from the customer bases of certain public sector banks. The primary data used in this study was gathered through the use of a structured questionnaire. For the study, 439 responders were taken into consideration. Random sampling was used to choose the responders. Customers of selected public sector banks were chosen for the study. This article demonstrates how important AI is to the banking industry. Additionally, it identifies the primary features or circumstances that impact the banking industry’s adoption of AI. The study tries to comprehend artificial intelligence and its significance in the banking service.