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The deferred recognition of COVID-induced losses at banks in many countries hasreignited the debate on regulatory forbearance. This paper presents a model where thepublic's own political pressure drives regulatory policy astray, because the public is poorlyinformed. Using probabilistic game...
Persistent link: https://www.econbiz.de/10013243078
This paper describes how behavioral elements are relevant to financial supervision,regulation, and central banking. It …
Persistent link: https://www.econbiz.de/10012912488
This paper examines the relationship between financial regulation and the current account in an intertemporal model of … the current account where financial regulation affects the current account through liquidity constraints. Greater … tested with an interacted panel VAR model where the coefficients are allowed to vary with the degree of financial regulation …
Persistent link: https://www.econbiz.de/10013107071
, and effective regulation. Recent developments suggest that regulatory approaches and their legal foundations need to … augment entity-based regulation with increasing focus on activities and risks as market structure changes. This paper draws on …
Persistent link: https://www.econbiz.de/10012830835
financial tranquility always call for more stringent regulation over time? We examine this question using a simple portfolio … optimal regulation/macroprudential policy. Our paper implies that policymakers should not only consider the cyclical …
Persistent link: https://www.econbiz.de/10012913903
This paper examines innovation, deregulation, and firm dynamics over the life cycle of the U.S. ATM and debit card … debit card function) interacted with banking deregulation drove the industry shakeout. Calibrating the model to a novel … deregulation played in the industry evolution …
Persistent link: https://www.econbiz.de/10013015590
system of capital regulation that addresses these needs by making changes to all three pillars of bank regulation: only …
Persistent link: https://www.econbiz.de/10013045939
Government support to banks through the provision of explicit or implicit guarantees affects the willingness of banks to take on risk by reducing market discipline or by increasing charter value. We use an international sample of bank data and government support to banks for the periods...
Persistent link: https://www.econbiz.de/10013080850
literature however suggests an opposite effect related to regulation, with tighter regulations encouraging foreign lending …
Persistent link: https://www.econbiz.de/10012977751
This paper compares the current regulatory capital requirements under the Dodd-Frank Act (DFA) and the 10-percent leverage ratio, as proposed by the U.S. Treasury and the U.S. House of Representatives' Financial CHOICE Act (FCA). We find that the majority of U.S. banks would not qualify for an...
Persistent link: https://www.econbiz.de/10012927469