In this paper, we investigate how the introduction of complex, model-based capital regulation affected credit risk of … financial institutions. Model-based regulation was meant to enhance the stability of the financial sector by making capital … introduce the model-based approach. Counter to the stated objectives, the introduction of complex regulation adversely affected …

. Yet, most of the existing rules in financial regulation are still “atomistic,” in that they fail to incorporate the fact …

. Yet, most of the existing rules in financial regulation are still “atomistic,” in that they fail to incorporate the fact …

the goal of using regulation to maintain financial stability is clear, it is not obvious how to design an effective …