The financial crisis has generated fundamental reforms in the financial regulatory system in the U.S. and internationally. Much of this reform was in direct response to the weaknesses revealed in the precrisis system. The new “macroprudential” approach to financial regulations focuses on...

Superseded by Working Paper 15-10.<p> We study an optimal disclosure policy of a regulator who has information about banks’ ability to overcome future liquidity shocks. We focus on the following trade-off: Disclosing some information may be necessary to prevent a market breakdown, but disclosing...</p>

Supersedes Working Paper 13-26<p>. We study an optimal disclosure policy of a regulator that has information about banks’ ability to overcome future liquidity shocks. We focus on the following tradeoff: Disclosing some information may be necessary to prevent a market breakdown, but disclosing too...</p>