The traditional approach to bank regulation, and notably to capital requirements, is based on microprudential cost-benefit analyses. The emphasis is, therefore, on rules that aim at ensuring that each and every banking firm is safe and sound. This note examines possible extensions of the...

Using the SEC’s 2004 decision to begin publicly disclosing its comment letters, we study the consequences of increased regulatory transparency on the banking industry. Because the SEC only issues comment letters to public banks, we exploit a difference-in-differences design to examine the...

Die EU-Institutionen legen seit einiger Zeit komplexe Konzepte und Regelwerke mit Produktbezug wie etwa die Integrierte Produktpolitik (IPP) oder die Rahmenrichtlinie zur umweltgerechten Gestaltung energiebetriebener Produkte (EUP) vor. Diese neuen, politisch gesetzten Umfeldbedingungen werden...

We propose a regulatory approach for restricting debt financing as an amplification mechanism across the financial system. A small stylised model illustrates the trade-off between static and time varying limits on leverage in dampening the financial cycle. The policy section proposes its...

European Union countries offer a unique experience of financial regulatory and supervisory integration, complementing various other European integration efforts following the second world war. Financial regulatory and supervisory integration was a very slow process before 2008, despite...

Financial supervision focuses on the aggregate (macroprudential) in addition to the individual (microprudential). But an agreed framework for measuring and addressing financial imbalances is lacking. We propose a holistic approach for the financial system as a whole, beyond banking. Building on...