This is one of three lectures I am giving in December 2012 at universities and government agencies in Shanghai and Beijing. In the context of comparing Western and Chinese shadow banking concerns and regulatory responses, this lecture addresses three broad questions: What is shadow banking...

In the modern financial architecture, financial services and products increasingly are provided outside of the traditional banking system — and thus without the need for bank intermediation between capital markets and the users of funds. Most corporate financing, for example, no longer is...

Although shadow banking is said to be huge, estimated at over $60 trillion, it is not well defined. This short and accessible paper attempts to define shadow banking by identifying its overall scope and its basic characteristics. Based on the definition derived, the paper also conceptually...

Much regulatory effort has been devoted to improving mortgage lending, the principal source of housing finance. To date, that effort has primarily been microprudential — intended to correct market failures in order to increase economic efficiency. In contrast, and while there is some overlap,...

This is an unedited draft of the closing chapter of a forthcoming book, entitled Systemic Risk in the Financial Sector: Ten Years After the Great Crash, that will be published by CIGI Press in fall 2019 (edited by Douglas W. Arner, Emilios Avgouleas, Danny Busch, and Steven L. Schwarcz). The...

A decade after the financial crisis, regulators worry that the regulation enacted to help stabilize the financial system may be insufficient to prevent another crisis. Examining that regulation with the benefit of hindsight, this Article finds that much has been accomplished but much remains to...

How should we think about regulating our dynamically changing financial system? Existing regulatory approaches have two temporal flaws. The obvious flaw, driven by politics and human nature (and addressed in other writings), is that financial regulation is overly reactive to past crises. This...

There are few types of securities as internationally traded as those issued in securitization (also spelled securitisation) transactions. The post-financial crisis regulatory responses to securitization in the United States and Europe are, at least in part, political and ad hoc. To achieve a...