This paper investigates how countries' micro-prudential regulatory regimes are related to banks' systemic risk. We use a bank-level systemic risk indicator that can be decomposed into a bank's individual risk and its systemic linkage. To proxy the strictness of a country's regulatory regime, we...

This chapter of the forthcoming Oxford Handbook of Financial Regulation considers, in broad historical perspective and also with respect to the global financial crisis, why financial systems are crisis-prone and the relationship between financial crises and regulation. It begins with an overview...

This paper investigates the role and necessity of system of crisis management of banking activity in present-day conditions. Particular attention is paid to the crisis management that is realised on the level of government and central bank. An overview and comparison of major anti-crisis...

This report explores the causes of the 2007-2008 UK financial crisis. Specifically, the impact of the UK financial system's transition from the “originate and distribute model” to the “mortgage-backed securities model”. This report explores the causes of the UK banking crisis, and its...

To understand the 2008 financial crisis, Neil Fligstein looks to the business models of the big US banks. He shows how firms got hooked on mortgages--originating them, securitizing them, selling those securities, and even buying the same securities. In time their addiction nearly collapsed the...

This paper develops and implements an equilibrium model of systemic risk. The model derives a systemic risk measure, loss beta, in characterizing all too-big-to-fail banks using a capital insurance equilibrium. By constructing each bank's loss portfolio with a recent accounting approach, we...

Are bank resolution regimes effective enough to improve financial stability? We look at the effect of the new bank resolution reforms on the systemic risk of big financial conglomerates. We find that in developed countries, parents in a stricter resolution regime have lower systemic risk...