«Alongside adequate capital and organization, the third factor of the stability of the banking system is the quality of corporate governance» (Draghi 2008). The paper addresses the relationship between bank corporate governance and sound and prudent management by analysing the main strands of...

In genere la letteratura sulla regolamentazione bancaria tra le due guerre ha insistito sull'unitarietà e sulla coerenza di un progetto volto a rivolvere i gravi problemi di instabilità finanziaria sistemica dell'economia italiana secondo un «gioco» nel quale il regolatore interviene per...

This piece discusses the framework for macroprudential policy in concrete terms. It raises three points. It makes a strong case for preventive tools over ex-post intervention, seeking to complement the Basel III individual buffer approach by targeting risk externalities. Next, it discusses a...

This paper emphasizes the importance of considering the mechanisms that coordinate economic transactions in a decentralized economy, namely the role played by a self-organizing network of entrepreneurial trading firms, for theories aimed at guiding macroeconomic policy. We review a research...

This paper examines the impacts of banking market structure and regulation on economic growth using new data on banking market concentration and manufacturing industry-level growth rates for U.S. states during 1899–1929—a period when the manufacturing sector was expanding rapidly and...

Proponents of liberal economic policies in the financial market often refer to the moral and economic authority of Adam Smith, the founder of economics as a science, to add weight to their recommendations. They think, they can do so, because Adam Smith is in these circles considered a prominent...

This paper contributes to the current debate on what role financial stability considerations should play in monetary policy decision and how best to integrate macro-prudential and monetary policy frameworks. The paper broadly supports the view that monetary policy easing induces greater...

Global gross capital flows remain well below their peak before the global financial crisis, which was reached after a period of unusual expansion. Much of the decline can be attributed to a reduced flow of lending by banks – particularly to, from and within the euro area – as banks...

Basel III has introduced a non-risk-weighted leverage ratio requirement (LRR) which complements the internal ratings based (IRB) capital requirements. It provides a backstop against model risk which arises if some loans get incorrectly rated and become toxic. We study the effects of the LRR on...

Distinguishing between risk and uncertainty, this paper draws on the psychological literature on heuristics to consider whether and when simpler approaches may out-perform more complex methods for modelling and regulating the financial system. We find that: (i) simple methods can sometimes...