worldwide political institutions to approve a more rigorous regulation on financial institutions and predict financial crises … EU regulation on credit rating agencies and current Basel II enhancements. Finally we can determine that most regulatory … counterproductive and a danger for worldwide economic growth. -- structured finance ; ratings ; regulation ; subprime crisis ; Basel II …

government guarantees rather than from corporate governance failures within banks. The idea of the proposed regulation is to … shareholder risk-shifting incentives. The decisive advantage of this approach compared to existing regulation is that the …

higher than that in a regulation-free system. We discuss a sufficient condition under which the systemic risk in a regulated …

the impact of micro-prudential regulation on the systemic risk in a cross-sectional dimension. We construct a static model … requirement regulation. In a system with a capital requirement regulation, the individual risk-taking of the financial … system can be higher than that in a regulation-free system. We discuss a sufficient condition under which the systemic risk …

We present a simple model to study the risk sensitivity of capital regulation. A banker funds investment with uninsured … banks attract cheaper deposit funding and require less capital. With a noisy signal, risk-sensitive capital regulation can …