The investment fund sector, the largest component of the non-bank financial system, is growing rapidly and the economy is becoming more reliant on investment fund financial intermediation. This paper builds a dynamic stochastic general equilibrium model with banks and investment funds. Banks...

This paper examines the supervision of Central Clearing Counterparties (CCPs) in Europe, since they function as an important pillar of the Capital Markets Union. Our research indicates that the current national-based supervision of CCPs leads to regulatory arbitrage and exposes the EU to huge...

This chapter examines the prospects for effective cross-border resolution of failing systemically important banks. It begins by recalling the prevalence of national interests when cross-border banks were resolved in the financial crisis. It notes that in some cases foreign creditors benefitted...

Following the Paris Agreement and pursuant to its objective of reordering financial flows to ensure climate change mitigation and adaptation, green finance has become a legislative priority for the European Union. This was illustrated by a unique, albeit limited, change in the mandate of the...

The European single market supported the creation of multinational banking groups. However, the European banking directives and the single license system were built along the model of the stand-alone bank and cannot keep pace with recent market developments. The national character of prudential...

Kryzys finansowy i gospodarczy, który wybuchł w 2007-2008 r. skłonił rządy, UE i instytucje międzynarodowe do podjęcia prób wskazania jego źródeł, analiz przebiegu i ustanowienia mechanizmów mających zapobiec powtórzeniu takim sytuacjom. Okazało się bowiem, że w warunkach...

Economists have dominated U.S. scholarship about the S&L debacle and they have universally viewed the regulatory response as horrific. This paper argues that the conventional economic wisdom is badly flawed. The U.S. regulatory response to the debacle was disastrous – when economists shaped it...

The paper analyzes the role of financial regulation in facilitating the development of organizational norms to enhance risk culture in banking institutions. Specifically, it examines the regulatory responses and industry-led initiatives taken since the financial crisis of 2007-08 to address...

In this paper, I suggest that the regulation of the financial system, especially if the aim is to prevent financial crises, should be focused on dealing with the consequences of the crises, not on trying to avoid their causes, although it may seem counterintuitive at first sight. Contrary to the...