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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
, 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
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
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
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
We examine the spillover effects between sovereigns and banks in a model with a heterogeneous banking system. An increase in sovereign's default risk affects financial intermediaries through two channels in this model. First, banks' funding costs might increase, inducing higher interest rates on...
Persistent link: https://www.econbiz.de/10012889148
This paper investigates the potential relationships between financial structures and economic outcomes. The empirical results that withstand a battery of methods suggest that some financial intermediation structures are likely to be more closely related to positive economic outcomes than others....
Persistent link: https://www.econbiz.de/10013080458
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