This is a chapter for a forthcoming volume Oxford Handbook of Financial Regulation (Oxford University Press 2014) (eds …. Eilís Ferran, Niamh Moloney, and Jennifer Payne). It provides an overview of EU financial regulation from the first banking … the accommodation of cross-border capital flows and their regulation necessarily require an orchestration of the …

An important question in banking is how strict supervision affects bank lending and in turn local business activity … the thrift regulator (OTS) to analyze economic links between strict supervision, bank lending and business activity. We … capital but can also correct deficiencies in bank management and lending practices, leading to more lending and a reallocation …

financial institutions (SIFIs). The purpose of this paper is to review the recent literature on systemic risk and evaluate the … regulation proposals in the Basel III framework with respect to this literature. A number of shortcomings in the current … framework are analyzed and three measures for future reform are proposed: counter-cyclical risk-weights, dynamic asset value …

, irrelevant, or very weak. For example, the return on equity contains a risk premium that must go down if banks have more equity … disciplining role are based on inadequate theory lacking empirical support. We conclude that bank equity is not socially expensive … remaining challenges are addressed, capital regulation can be a powerful tool for enhancing the role of banks in the economy. …

creditors, and integrates bank regulation into the concept of debt governance. The empirical section surveys the extant …This essay discusses the corporate governance of banks. Bank managers must balance competing demands from shareholders …) and regulators (debt governance) can meaningfully coexist in their quest to guide and constrain bank managers. …

This paper develops a model of banking to study the risk-taking consequences of contingent capital (CC). It begins with … (latter) asset typically induces a preference for risk taking (safety), the net preference of CC-holders upon conversion … preferences and equity control rights - may be inclined to either: (1) dilute their own equity stakes through "excessive" risk …

analysis is relevant to the debate on bank capital regulation, and complements Admati et al. (2010). In that paper we argued … assessing regulation. Other arguments made to support claims that equity is expensive are flawed. Like reduction in subsidies …, the effects of leverage reduction on bank managers or shareholders do not represent a social cost. In fact, we show that …

models, the measurement and indicators of systemic risk, macroprudential tools and their effectiveness; and to identify …

securities trading law (WpHG) of 1995, the practical efficacy of disclosure regulation is very low. On the one hand, the …