paper I show that first-best regulation also leads to more attention for the fundamentals of countries to which capital is …

paper I show that first-best regulation also leads to more attention for the fundamentals of borrowing countries. …

The recent financial crisis has highlighted the need to go beyond a purely micro approach to financial regulation and … financial regulation has grown considerably. The policy debate is focusing in particular on macroprudential tools and their …

This report presents an overview of the theory of regulation in general, with special attention for the regulation of … banks. Two theories of government regulation are described. The first, normative, theory uses market failures as the … justification of government regulation. The second, positive, theory explains the existence of regulation as the outcome of the …

banks' liquidity risk management. Our main question is whether the presence of liquidity regulation substitutes or … complements banks' incentives to hold liquid assets. Our results reveal that in the absence of liquidity regulation, the … substituted by liquidity regulation, a bank's disclosure requirement and size remain significant. A key takeaway from our analysis …

to a liquidity regulation that is very similar to Basel III's Liquidity Coverage Ratio (LCR). We find that most banks … the regulation. More solvent banks hold fewer liquid assets against their stock of liquid liabilities, suggesting an …