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results suggest that centralized regulation has heterogeneous effects depending on the country's development degree. Improving …
Persistent link: https://www.econbiz.de/10013293062
The failure to spot emerging systemic risk and prevent the current global financial crisis warrants a reexamination of the approach taken so far to crisis prevention. The paper argues that financial crises can be prevented, as they build up over time due to policy mistakes and eventually erupt...
Persistent link: https://www.econbiz.de/10013145394
this crisis are decidedly not new. This paper reviews what was regarded as the conventional wisdom on financial regulation … experienced. A key theme is that financial regulation needs to be more dynamic, taking account of financial innovations and how … they affect the sector. No such approach to regulation seems possible without greater accountability for regulators and …
Persistent link: https://www.econbiz.de/10013148118
The issue of bank dividend regulation has become highly controversial as the stress induced on bank capital during the … 2008 financial crisis and the covid pandemic created a demand for enhanced regulation and restrictions on bank dividend …
Persistent link: https://www.econbiz.de/10013245206
This essay shows that government credit-allocation schemes generate incentive conflicts that undermine the quality of bank supervision and eventually produce banking crisis. For political reasons, most countries establish a regulatory culture that embraces three economically contradictory...
Persistent link: https://www.econbiz.de/10013077638
how to treat sovereign exposures in bank regulation. Our contribution is to model endogenous sovereign portfolio …
Persistent link: https://www.econbiz.de/10012061145
premature to conclude that 'Too Big to Fail" has been solved, but macro-prudential regulation is now much more effective and …
Persistent link: https://www.econbiz.de/10012022346
Euro area governments have committed to break the doom loop between bank risk and sovereign risk. But policymakers have not reached consensus on whether and how to reform the regulatory treatment of banks' sovereign exposures. To inform policy discussions, this paper simulates portfolio...
Persistent link: https://www.econbiz.de/10011978559
The potential dark side of government guarantees, introduced to mitigate concerns about financial stability during economic downturns, is that they may create incentives for excessive risk-taking. In a low-interest rate environment, this effect maybe even stronger as financial institutions try...
Persistent link: https://www.econbiz.de/10012848392
The paper discusses the reform of capital regulation of banks in the wake of the financial crisis of 2007/2009. Whereas … arguments that run counter to economic logic or are themselves evidence of moral hazard and a need for regulation …
Persistent link: https://www.econbiz.de/10014193276