Download or read book Essays on Bank Regulation and Intervention written by Wen-ling Lu and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: My second essay, "Do Bank Regulation and Supervision Improve Bank Performance and Reduce The Likelihood of Banking Crises?" focuses on the impact of bank regulation and supervision on various banking outcomes. The emphasis is on whether specific bank regulations and supervisory practices changed over time and whether they reduced the likelihood of a country experiencing a banking crisis. Given the role that banks have played in crises over time and in countries worldwide, this cross country analysis is important to determine whether specific regulatory and supervisory practices have helped reduce the likelihood f crises in countries, and thereby enhanced bank stability, performance and development.

Download or read book Essays in Household Finance and Bank Regulation written by Vijay Narasiman and published by . This book was released on 2017 with total page 175 pages. Available in PDF, EPUB and Kindle. Book excerpt: My dissertation focuses on topics in household finance and bank regulation. In chapter 1, I estimate the household consumption response to a predictable, quasi-permanent income shock. Credit card spending rises well before the positive shock occurs and then plateaus, suggesting that households are forward-looking and have enough liquidity to increase spending. This type of household behavior is found to be remarkably similar to the simulation of a modified buffer-stock model. The main conclusion is that households appear to be quite sophisticated in their consumption behavior, which has various policy implications.In chapter 2 (joint with Divya Kirti), we present a model that describes how different types of bank regulation can affect the likelihood of fire sales in a crisis. There are three main results. First, the design of capital requirements affects whether fire sales can occur in the recapitalization process. Second, the interaction between capital and liquidity requirements causes banks to become larger and can also make fire sales more likely. Third, mandatory equity issuance can be a useful policy for limiting fire sales, but only if binding. Collectively, our findings suggest that bank regulation may have a strong effect on the likelihood of fire sales. In addition, time-varying risk weights may more effective than time-varying capital requirements in preventing fire sales.In chapter 3 (joint with Todd Keister), we investigate whether policy makers should be permitted to bail out financial institutions during a financial crisis. We develop a model that incorporates two competing views about the causes of these crises: self-fulfilling shifts in investors' expectations and deteriorating economic fundamentals. We show that - in both cases - the desirability of allowing intervention depends on a tradeoff between incentives and insurance. If policy makers can correct incentive distortions through regulation, then allowing intervention is always optimal. If regulation is imperfect and the risk-sharing benefit from intervention is absent, it is optimal to prohibit intervention. Our results show that it is possible to provide meaningful policy analysis without taking a stand on the contentious issue of whether financial crises are driven by expectations or fundamentals.

Download or read book Banking Monetary Policy and the Political Economy of Financial Regulation written by Gerald A. Epstein and published by Edward Elgar Publishing. This book was released on 2014-07-31 with total page 391 pages. Available in PDF, EPUB and Kindle. Book excerpt: The many forces that led to the economic crisis of 2008 were in fact identified, analyzed and warned against for many years before the crisis by economist Jane D�Arista, among others. Now, writing in the tradition of D�Arista's extensive work, the

Download or read book Money and the Market written by Kevin Dowd and published by Routledge. This book was released on 2013-12-16 with total page 252 pages. Available in PDF, EPUB and Kindle. Book excerpt: Kevin Dowd asserts that state intervention into financial and monetary systems has failed, and that we would be better off if financial markets were left to regulate themselves. This collection will appeal to students, researchers and policy makers in the monetary and financial area.

Download or read book Five Essays on Bank Regulation written by Markus Behn and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Bank Regulation written by Dae-sik Kim and published by . This book was released on 1987 with total page 179 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Bank Regulation and Supervision written by Lucas Avezum and published by . This book was released on 2022 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Regulating Finance written by Tommaso Padoa-Schioppa and published by OUP Oxford. This book was released on 2004-03-25 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt: Grounding its analysis in the historical evolution of financial regulation, this book addresses a range of public policy issues that concern the design of financial regulation and its enforcement, and contributes several new ideas to the debate in this field. Financial systems have become more competitive across sectors of financial institutions and nations, and direct regulations have been removed in pursuit of efficiency. However, as the risk of institutional failures has increased, de-regulation has had to be followed by re-regulation. In which form should this happen? This book answers this question. First revisiting the issue of "why to regulate", Padoa-Schioppa argues that the need to continue to regulate banks in a special way follows from their key role as liquidity providers. At the same time, his argument recognizes the need for close interplay in the regulation of different financial sectors. The book goes on to discuss "how" regulation should be carried out in the modern environment. It should be market-friendly, but the balance between official intervention and market discipline is difficult to get right. Moreover, in an increasingly international context, financial regulation has to be evenly applied across countries to avoid regulatory arbitrage. The final part of the book turns to issues specifically connected with developments in the European Union. One major issue is the maintenance of financial stability in the Euro area where the financial system is becoming especially integrated. Another major issue is the appropriate role of central banks. As the literature and practice are still very much under development, Padoa-Schioppa analyses the general aspects of the financial stability function of central banks — particularly in relation to the monetary policy and supervision functions — as well as the tools available for the Eurosystem.

Download or read book Why Are There So Many Banking Crises written by Jean-Charles Rochet and published by Princeton University Press. This book was released on 2009-02-09 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: Almost every country in the world has sophisticated systems to prevent banking crises. Yet such crises--and the massive financial and social damage they can cause--remain common throughout the world. Does deposit insurance encourage depositors and bankers to take excessive risks? Are banking regulations poorly designed? Or are banking regulators incompetent? Jean-Charles Rochet, one of the world's leading authorities on banking regulation, argues that the answer in each case is "no." In Why Are There So Many Banking Crises?, he makes the case that, although many banking crises are precipitated by financial deregulation and globalization, political interference often causes--and almost always exacerbates--banking crises. If, for example, political authorities are allowed to pressure banking regulators into bailing out banks that should be allowed to fail, then regulation will lack credibility and market discipline won't work. Only by insuring the independence of banking regulators, Rochet says, can market forces work and banking crises be prevented and minimized. In this important collection of essays, Rochet examines the causes of banking crises around the world in recent decades, focusing on the lender of last resort; prudential regulation and the management of risk; and solvency regulations. His proposals for reforms that could limit the frequency and severity of banking crises should interest a wide range of academic economists and those working for central and private banks and financial services authorities.

Download or read book Essays in Bank Regulation written by Yadav Gopalan and published by . This book was released on 2018 with total page 194 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation examines how information asymmetry affects various aspects of bank regulation. The first chapter examines the relation between CAMEL rating disclosure and bank actions. The empirical results suggest that CAMEL rating disclosure helped banks remediate asset quality issues, especially those banks that were found to be near critical regulatory thresholds. The second chapter examines the relation between regulator proximity and bank risk-taking activities. The results show that increasing distance between banks and regulators enables banks to increase their leverage. These banks face a higher likelihood of failure. The final chapter studies whether increased information asymmetry allows rating agencies to cater to borrowers. The results show that rating agencies for unlisted firms are more favorable and are less predictive of future default. Results across all three chapters help inform policymakers and regulators as to how to structure banking supervision and regulation.

Download or read book Regulation of Banks and Finance written by Carlos A. Peláez and published by Springer. This book was released on 2009-11-18 with total page 287 pages. Available in PDF, EPUB and Kindle. Book excerpt: As the financial crisis engulfs the world economy, there is an ambitous agenda for regulatory reform. This book provides a comprehensive review of the analysis of finance, economics and the law and economics, illuminating past and current banking and financial regulation designed to prevent another credit/dollar crisis and global recession.

Download or read book Essays on corporate control and bank regulation written by Arturo Bris and published by . This book was released on 1998 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Banking Policy Government Intervention in the US Banking Sector written by Mohamed Ali and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book State and Financial Systems in Europe and the USA written by Jaime Reis and published by Routledge. This book was released on 2016-04-01 with total page 266 pages. Available in PDF, EPUB and Kindle. Book excerpt: During the twentieth century the financial sector became possibly the most regulated area of the economy in many advanced and developing countries. The interwar years represented the defining moment for the escalation of governments' intervention, turning the State into the core of financial systems in its capacity of regulator, supervisor or owner. The essays in this collection shed light on different aspects of the experience of financial regulation, ownership and deregulation in Europe and the USA from a secular historical perspective. The volume's chapters explore how the political economy of finance changed in the nineteenth and twentieth centuries and how such changes were related to shifting attitudes towards globalization. They also investigate how regulation responded to governance problems of financial intermediaries and markets, and how different legal frameworks and institutional architectures influenced such response. The collection engages with a set of issues as diverse as they are interrelated across countries and over time: the regulatory attitude of British authorities toward the banking system and the stock exchange market in the nineteenth and twentieth centuries; the comparative evolution of bankruptcy laws and procedures; the link between state, regulation and governance in the evolution of the US and French financial systems; the emergence of banking regulation and supervision by central banks; the regulation and supervision of international financial markets since the 1950s; and the connection between deregulation and banking crises at the end of the past century. Taken as a whole, the chapters offer an intriguing insight into the differing ways western countries approached and responded to the challenges of the international financial system, and the legacy of this on the modern world. In so doing the volume holds up to historical scrutiny the debate as to whether overt state regulation of financial markets always has a negative affect on economic growth, or whether it can be an essential tool for developing nations in their efforts to expand their economies.

Download or read book Essays on Dynamic Banking Regulation written by Ilhyock Shim and published by . This book was released on 2005 with total page 244 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Banking and Regulation written by Tirupam Goel and published by . This book was released on 2016 with total page 125 pages. Available in PDF, EPUB and Kindle. Book excerpt: The broad goal of this dissertation is to further our understanding of the relationship between real and financial sectors of an economy, to identify inefficiencies in financial sector intermediation, and to design financial regulation policies that can address these inefficiencies. The three chapters of this dissertation contribute to specific aspects of the above goal. In the first chapter, I develop a general equilibrium macroeconomic model with a dynamic banking sector in order to characterize optimal size-dependent bank leverage regulation. Bank leverage choices are subject to the risk-return trade-off, and are inefficient due to financial frictions. I show that leverage regulation can generate welfare gains, and that optimal regulation is tighter relative to the benchmark and is bank-size dependent. In particular, optimal regulation is tighter for large banks relative to small banks, and it leads to the following welfare generating effects. First, as small banks take more leverage, they grow faster conditional on survival, leading to a selection effect. Second, small bank failures are less costly while entrants have higher relative efficiency, leading to a cleansing effect. Third, tighter regulation for large banks reduces their failure rate, which generates welfare since large banks are more efficient and costlier to replace, leading to a stabilization effect. The calibrated model rationalizes various steady state moments of the US banking industry, and points towards qualitatively similar but quantitatively tighter leverage regulation relative to the proposition in Basel III accords. In the second chapter, I study the financial contagion problem when banks in order to hedge against idiosyncratic shocks, engage in two-dimensional as opposed to one-dimensional interactions with other banks. To this end, I develop a double-edge interbank network model where banks engage in debt contract and securitization transactions with other banks. I show that the standard intuition of financial contagion does not translate from the one-dimensional case to the two-dimensional case i.e. financial contagion can either weaken or worsen depending on the network and parameter configuration. In particular, I derive parametrization for the case where financial contagion worsens. In the third chapter, we investigate whether countercyclical capital-ratio regulation (CCR) should be implemented strictly as a rule, or whether regulators should have discretion with respect to the timing and magnitude of changes in capital-ratio requirement. Using a simple model we prove the proposition that under information asymmetry, discretionary CCR leads to an increase in policy uncertainty relative to rule-based CCR. We prove a similar proposition for a general finite-horizon economy. Finally, we document that since discretionary CCR enables the regulator to respond to unexpected shocks, a benevolent regulator faces the welfare trade-off while choosing between rule-based and discretionary CCR.

Download or read book Essays on bank monitoring regulation and competition written by Matej Marinč and published by . This book was released on 2008 with total page 226 pages. Available in PDF, EPUB and Kindle. Book excerpt: