ignoring the dynamic nature of credit risk could lead to a severe underestimation of credit risk (e.g. by a factor of up to 1 …

. Capital serves to ameliorate a moral hazard problem in the choice of risk. There is a fixed aggregate supply of bank capital …, so the cost of capital is endogenous. A regulator sets risk-sensitive capital requirements in order to maximize a social … welfare function that incorporates a social cost of bank failure. We consider the effect of a negative shock to the supply of …

This paper focuses on the impact of financial market infrastructures (FMIs) and of their regulation on the post … FMIs, and focuses on the dichotomy between the ‘systemic risk’ and ‘transaction costs’ approaches to financial markets and … FMIs regulation. By reviewing the current move from ‘private’ markets to ‘public’ markets internationally, and with respect …

bank information. Policymakers have celebrated this global initiative as the end of bank secrecy. Exploiting a unique panel … dataset, our study is the first attempt to assess how the treaties affected bank deposits in tax havens. Rather than …

argument for the existence of safe harbours is liquidity in the financial market. Safe harbour rules do away with a number of … legal concepts, notably those attached to traditional security, and thereby allow for an exponentiation of liquidity … liquidity. To the extent that safe harbours accelerate contagion in terms of crisis, which in principle is a valid argument …

from the history of financial market regulation. …

Complex regulatory decisions about risk rely on the brokering of evidence between providers and recipients, and involve … risk science, decision psychology and computer simulation. A two-agent model that accounts for the sufficiency of evidence …