Maymin, Philip; Maymin, Zakhar - In: Financial Markets and Portfolio Management 26 (2012) 3, pp. 299-313
We show that any objective risk measurement algorithm mandated by central banks for regulated financial entities will … result in more risk being taken by those financial entities than would otherwise be the case. Furthermore, the risks taken by … entire financial system more fragile. This result leaves three options for the future of financial regulation: (1) continue …