Regulation consists of rulemaking and enforcement. Economic theory offers two complementary rationales for regulating … arise in multi- party relationships and that regulation introduces opportunities to impose rules that enhance the welfare of … discretion and choose actions for the common good. Agency-cost theories portray regulation as a way to raise the quality of …

evidence from two surveys--one of central bank governors, the other of academic specialists. We find that central banks in …

We study time-consistent bank resolution mechanisms. When interventions are ex post efficient, a government cannot …

We analyze a variant of the Diamond-Dybvig (1983) model of banking in which savers can use a bank to invest in a risky … project operated by an entrepreneur. The savers can buy equity in the bank and save via deposits. The bank chooses to invest … in a safe asset or to fund the entrepreneur. The bank and the entrepreneur face limited liability and there is a …

We investigate the origins and growth of the Financial Stability Mandate (FSM) to examine why bank supervisors, inside … changes in the FSM, (2) whether supervision should be conducted within the central bank or in independent agencies and (3 …) whether supervision should be rules- or discretion/principles-based. As histories of bank supervision are few, we focus on the …

bank supervision and eventually produce banking crisis. For political reasons, most countries establish a regulatory … culture that embraces three economically contradictory elements: politically directed subsidies to selected bank borrowers …