Many risks associated with hedge funds can be addressed through indirect measures aimed at the hedge funds’ counterparties and creditors, nearly all of which are regulated banks and securities fi rms. Hence, we consider here how indirect supervision has been made more effective over time and...

The treatment of sovereign risk in banking and insurance regulations has been highlighted by the sovereign debt strains affecting most advanced economies. In particular, it has become key to assess whether these regulations require from financial institutions to hold adequate regulatory capital...