Under existing accounting arrangements banks have considerable discretion in determining the level of provisions against loan losses. However, variable provisioning can undermine one of the central purposes of the 1988 Basle Accord on capital adequacy, which is to ensure that risk-weighted...

This paper examines the likely impact of Capital Adequacy Directive (CAD) on European Securities markets, focusing in particular on the competitive consequences for institutions engaged in the trading of equity securities. The major conclusions are: first, the CAD cannot by itself ensure a level...

The regulation of securities firms has become a topic of increasing concern to policy-makers worldwide. This concern reflects both the increasing potential for financial shocks to be transmitted across borders, due to the globalisation of financial markets, and the fact that disparities between...

In recent years regulators have been increasingly focusing their attention on payment, clearing and settlement systems on the grounds that any serious disruption to the settlement process could have widespread systemic consequences. These concerns embrace wholesale interbank payment systems,...

1) Deposit Insurance in Theory and Practice by Richard Dale. 2) Lending of Last Resort and Systemic Stability in the Eurozone by Christian de Boissieu and Franco Bruni. The first paper overviews theoretical arguments for and against deposit insurance, a system that can be aimed at consumer...

Bank stability and systemic stability are old issues in banking. There have been many financial crises in economic history, and the painful consequences of those crises have again and again raised questions concerning how to avoid them and how to protect depositors against losses.