This policy brief examines issues associated with the design and implementation of regulatory policymaking in interconnected financial markets. The policy brief explains why international interdependence among nations' financial markets and regulations can provide an incentive for national...

Using a unique hand collected sample of professional connections between finance ministers and the directors and top executives of the three largest credit rating agencies for 38 European sovereigns between January 2000 and November 2017, we show that professional connections result in higher...

Using 311 sovereign rating actions by the three leading global rating agencies between January and August 2020, we show that severity of sovereign ratings actions is not affected by the intensity of the COVID-19 health crisis (proxied by case and mortality rates). We find that economic...

It was everyone's worst nightmare; the spectre of systemic collapse. And this time, everyone was in it together. The complexity of modern financial instruments was one obvious culprit. Centuries old legal principles, such as the notion of "insurable interest", were also cast aside; old fashioned...

Many countries around the world have experienced banking crises in the past two decades, and all countries are witnessing substantial changes in the structure and nature of banking. These developments have led national and multilateral policymakers to focus increased attention on the crucial...