We propose a simple network–based methodology for ranking systemically important financial institutions. We view the risks of firms –including both the financial sector and the real economy– as a network with nodes representing the volatility shocks. The metric for the connections of the...

Im vorliegenden Beitrag werden wesentlichen Merkmale eines Too Big To Fail (TBTF) Regimes diskutiert. Hierunter wird ein politisches Umfeld verstanden, in dem grosse, systemrelevante Finanzinstitute durch staatliche Massnahmen vor der Insolvenz gerettet werden. Das TBTF Regime rechtfertigt sich...

Financial markets that function well are crucial for the long-run economic growth of a country. This paper, in the first instance, looks at how the financial development of an economy can be measured. It then traces the financial development of India through the 1990s to the present, assessing...

Reform of financial regulation is a priority on the international agenda. At the call of the Group of Twenty Finance Ministers and Central Bank Governors (G-20), a number of new international standards have been issued, most notably Basel III. As a member of the G-20, the Financial Stability...

In this paper, we present two stylized models of the financial system. We make the case that in order to realize the potential of a well-functioning complete financial market, financial system designers and financial service providers will need to think about ways to deliver financial...

This paper discusses the role of state intervention for prevention, containment, and resolution of financial crises based mainly on the Korean experience during the 1997 Asian financial crisis. Crises in emerging market and developing economies tend to be more complicated than those faced by...

In this paper, we present two stylized models of the financial system. We make the case that in order to realize the potential of a well-functioning complete financial market, financial system designers and financial service providers will need to think about ways to deliver financial...

Im vorliegenden Beitrag werden wesentlichen Merkmale eines Too Big To Fail (TBTF) Regimes diskutiert. Hierunter wird ein politisches Umfeld verstanden, in dem grosse, systemrelevante Finanzinstitute durch staatliche Massnahmen vor der Insolvenz gerettet werden. Das TBTF Regime rechtfertigt sich...

This paper discusses the role of state intervention for prevention, containment, and resolution of financial crises based mainly on the Korean experience during the 1997 Asian financial crisis. Crises in emerging market and developing economies tend to be more complicated than those faced by...

This four-part study is a critical analysis of several reports dealing with the reform of the financial system in the United States. The study uses Minsky’s framework of analysis and focuses on the implications of Ponzi finance for regulatory and supervisory policies. The main conclusion of...