[eng] Prudential regulation and market discipline . Market discipline is considered a fundamental element of on-going reforms of banking regulatory supervisory systems. This article aims at clarifying the logic of the main theoretical arguments in favour of market discipline and reviewing the...

We model systemic risk in an interbank market. Banks face liquidity needs as consumers are uncertain about where they need to consume. Interbank credit lines allow banks to cope with these liquidity shocks while reducing the cost of maintaining reserves. However, the interbank market exposes the...

In the 1990s, large insurance companies failed in virtually every major market, prompting a fierce and ongoing debate about how to better protect policyholders. Drawing lessons from the failures of four insurance companies, When Insurers Go Bust dramatically advances this debate by arguing that...