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In this paper, we discuss whether and how bank lobbying can lead to regulatory capture and have real consequences through an overview of the motivations behind bank lobbying and of recent empirical evidence on the subject. Overall, the findings are consistent with regulatory capture, which...
Persistent link: https://www.econbiz.de/10012103556
This paper describes how behavioral elements are relevant to financial supervision, regulation, and central banking. It …
Persistent link: https://www.econbiz.de/10011905870
The paper analyzes the quality of financial sector regulation and supervision around the globe. Unlike studies that … collect and analyze data on regulation and supervision ""on the books,"" this study also analyzes available information on … supervisory implementation, making use of data from IMF-World Bank assessments of compliance with international standards and …
Persistent link: https://www.econbiz.de/10014401329
We present a semi-structural model of default risk, which is a function of loan and borrower characteristics, economic conditions, and the regulatory environment. We use this model to simulate bank credit losses for stress-testing purposes and to calibrate borrower-based macroprudential tools....
Persistent link: https://www.econbiz.de/10012301885
bank regulation. We build a structural model in which banks can strategically bunch their assets below regulatory …
Persistent link: https://www.econbiz.de/10013170059
Persistent link: https://www.econbiz.de/10012487179
. It is shown that such ""regulatory capture"" in banking does not imply ineffectual regulation; a ""captured"" regulator …
Persistent link: https://www.econbiz.de/10014400538
The use of collateral has become one of the most widespread risk mitigation techniques. While it brings stabilizing effects to the individual lender we argue that it may exacerbate systemic risk through margin call activation. We show how a liquidity shock to the cash lender may propagate as a...
Persistent link: https://www.econbiz.de/10014397334
This paper builds on a Technical Note produced as part of the IMF’s 2010 Financial Sector Assessment Program (FSAP) review of the United States. It addresses enterprise-wide oversight of financial groups, a key tool to mitigate systemic risk. Focusing on legal arrangements, it recommends...
Persistent link: https://www.econbiz.de/10014403220
Globally, financial institutions have increased their holdings of domestic sovereign debt, tightening the linkage between the health of the financial system and the level of sovereign debt, or the "financial sector-sovereign nexus," during the ongoing COVID-19 pandemic. In South Africa, the...
Persistent link: https://www.econbiz.de/10013170007