regulation is shown to operate at a collective level, regulating each bank as a function of both its joint (correlated) risk with … liability of banks and the presence of a negative externality of one bank’s failure on the health of other banks give rise to a … risk. Regulatory mechanisms such as bank closure policy and capital adequacy requirements that are commonly based only on a …

The merit of having international convergence of bank capital requirements in the presence of divergent closure … policies of different central banks is examined. While the privately optimal level of bank capital decreases with regulatory … forbearance (they are strategic substitutes), the socially optimal level of bank capital increases with regulatory forbearance …

but bring future prosperity. We test these hypotheses, using data on micro-economic reforms from the World Bank’s Doing … reform, because politicians have the incentive to embrace growth-enhancing reforms to win elections. On the other hand …

economic reforms. We test this hypothesis using data on microeconomic reforms from the World Bank’s Doing Business database … on resource abundance equals 10.9 percentage points more reform, a large effect given that the mean probability of reform …

exogenous variation in regulation generated by the interaction of reform and its institutional determinants, we find a …What determines the enforcement of deregulation reform of business activities? What are the outcomes of deregulation …? We address these questions using an episode of a drastic reform in Russia between 2001 and 2004 which liberalized …

The paper analyzes the effects of changes to regulatory policy and to monetary policy on cross-border bank lending … since the global financial crisis. Cross-border bank lending has decreased, and the home bias in the credit portfolio of … importance of regulatory arbitrage as a driver of cross-border bank flows since the global financial crisis. However, in the euro …

the preservation of the central bank’s legitimacy requires that a clear line be drawn between the central bank’s provision … central bank that expose it to material credit risk should be guaranteed by the Treasury. In addition, central banks must … their mandate and competence, including fiscal policy and structural reform. …

where deregulation raises risks in banking. The central bank is assumed to maximize an objective function an argument of … which is the probability of bank failure. It is then shown that the usual trade-offs between policy objectives imply that …

For an international sample of banks, we construct measures of a bank’s absolute size and its systemic size defined as … size relative to the national economy. We then examine how a bank’s risk and return, its activity mix and funding strategy … that a bank’s interest cost tends to rise with its systemic size can also in part explain why a bank’s rate of return on …

This paper investigates whether the new Basel Accord will induce a change in bank lending to emerging markets using a …