This paper provides evidence on how the new international regulation on Global Systemically Important Banks (G … across 12 relevant regulatory announcement and designation events. We observe that the new regulation negatively affects the …-Big-to-Fail (TBTF) perception by investors. The fact that these valuation effects emerge from a regulation specifically designed to …

measures of capital flow management, such as capital controls and macroprudential policies. In our main results, we show that … higher levels of capital controls and macroprudential policies both dampen the sensitivity to the global factor. Furthermore …