It has been argued that higher capital requirements are not expensive for the banking system, by exploiting a renewed edition of a standard argument from corporate finance, the Modigliani-Miller theorem (1958 and 1963). However, the M&M model must be carefully analysed before endorsing the...

Lo scopo di questa nota è quello di presentare un modello analitico che dimostri come la presupposta contraddizione tra creazione di valore per gli azionisti e per i diversi portatori di interesse nei confronti dell'impresa (stakeholders) possa essere riconciliata. Nell'ambito di un modello...

The US Basel III Final Rule was issued by the Banking Agencies (Fed, OCC and FDIC) in July 2013. The Rule implements the international Basel III framework defined by the Basel Committee on Banking Supervision and represents a major overhaul of the US banks' capital requirements, since the...

After recalling the quantitative relevance as of end-2019 of “new normal” ultra-low interest rates at world level, a brief discussion is offered of key areas of economic analysis and policy critically impacted by negative nominal interest rates. Specific reference is made to the following...

The view put forward in this paper is that the index-linking of long-term public debt today represents a financial instrument that fosters a low average rate of inflation. In particular, bonds that are fully linked to the prices of a representative basket of goods and services permit a reduction...

This paper argues that EMU has been and continues to be a politically driven process. In this perspective, it examines the issues and the implications of potential Euroexit and Euro break up: it underlines that these processes would have a prominent political dimension, as was the case for the...

It has been often argued that higher capital requirements are not costly for the banking system, by exploiting a renewed edition of a standard argument from corporate finance, the Modigliani-Miller theorem (1958 and 1963). However, the M&M model must be carefully analysed before endorsing the...

This paper offers a review of the new CRR/CRD IV capital regulatory framework for banks in the EU, which represents the transposition into European law of the Basel III standard. Major shortcomings of the Second Capital Accord are examined, and the repair work is assessed in the light of the...

The financial turmoil has put into question the effectiveness of the existing regulatory framework for banks. Regulators reacted to the crisis by imposing new capital requirements to achieve both higher and better quality capital, but the theoretical/conceptual framework behind banks' regulation...

The Basle Committee is seeking to amend the 1988 Accord by introducing a new capital adequacy framework for credit institutions. The proposals, put forward in a consultative paper issued in June 1999 (A New Adequacy Framework), have been submitted for comments to the international banking...