Systemic Risk Institutional Design And The Regulation Of Financial Markets

Author : Anita Anand
Publisher : Oxford University Press
Page : 257 pages
File Size : 45,5 Mb
Release : 2016
Category : Business & Economics
ISBN : 9780198777625

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Systemic Risk, Institutional Design, and the Regulation of Financial Markets by Anita Anand Pdf

Following the recent financial crisis, regulators have been preoccupied with the concept of systemic risk in financial markets, believing that such risk could cause the markets that they oversee to implode. At the same time, they have demonstrated a certain inability to develop and implement comprehensive policies to address systemic risk. This inability is due not only to the indeterminacy inherent in the term 'systemic risk' but also to existing institutional structures which, because of their existing legal mandates, ultimately make it difficult to monitor and regulate systemic risk across an entire economic system. Bringing together leading figures in the field of financial regulation, this collection of essays explores the related concepts of systemic risk and institutional design of financial markets, responding to a number of questions: In terms of systemic risk, what precisely is the problem and what can be done about it? How should systemic risk be regulated? What should be the role of the central bank, banking authorities, and securities regulators? Should countries implement a macroprudential regulator? If not, how is macroprudential regulation to be addressed within their respective legislative schemes? What policy mechanisms can be employed when developing regulation relating to financial markets? A significant and timely examination of one of the most intractable challenges posed to financial regulation.

Author : Panagiotis Delimatsis,Nils Herger
Publisher : Kluwer Law International B.V.
Page : 426 pages
File Size : 46,5 Mb
Release : 2011-01-01
Category : Business & Economics
ISBN : 9789041133557

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Financial Regulation at the Crossroads by Panagiotis Delimatsis,Nils Herger Pdf

This book brings outstanding expertise and provides insightful perspectives from nineteen authors with diverse backgrounds, including officials from international organizations, national regulators, and commercial banking, as well as academics in law, economics, political economy, and finance. The authors not only shed light on the causes of the financial turmoil, but also present thoughtful proposals that contribute to the future policy debate, and discuss opportunities that financial services can offer in funding activities which raise standards of living through initiatives in microfinance, renewable energy, and food distribution. The contributions to this volume tackle several of the thorniest issues of financial regulation in a post-crisis environment, such as: the mechanics of contagion within the financial system and the role of liquidity; moral hazard when large financial institutions are no longer subject to the disciplinary effects of bankruptcy; bank capital requirements; management compensation; design of bank resolution schemes; a function-centric versus institution-centric regulatory approach; subsidization and compatibility of stimulus packages with EU rules on state aid; trade finance and the role of the GATS prudential carve-out; and the role of financial services in promoting human rights or combating climate change.

Author : Aron Gottesman,Michael Leibrock
Publisher : John Wiley & Sons
Page : 272 pages
File Size : 43,7 Mb
Release : 2017-06-07
Category : Business & Economics
ISBN : 9781119348542

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Understanding Systemic Risk in Global Financial Markets by Aron Gottesman,Michael Leibrock Pdf

An accessible and detailed overview of the risks posed by financial institutions Understanding Systemic Risk in Global Financial Markets offers an accessible yet detailed overview of the risks to financial stability posed by financial institutions designated as systemically important. The types of firms covered are primarily systemically important banks, non-banks, and financial market utilities such as central counterparties. Written by Aron Gottesman and Michael Leibrock, experts on the topic of systemic risk, this vital resource puts the spotlight on coherency, practitioner relevance, conceptual explanations, and practical exposition. Step by step, the authors explore the specific regulations enacted before and after the credit crisis of 2007-2009 to promote financial stability. The text also examines the criteria used by financial regulators to designate firms as systemically important. The quantitative and qualitative methods to measure the ongoing risks posed by systemically important financial institutions are surveyed. A review of the regulations that identify systemically important financial institutions The tools to use to detect early warning indications of default A review of historical systemic events their common causes Techniques to measure interconnectedness Approaches for ranking the order the institutions which pose the greatest degree of default risk to the industry Understanding Systemic Risk in Global Financial Markets offers a must-have guide to the fundamentals of systemic risk and the key critical policies that work to reduce systemic risk and promoting financial stability.

Author : Kern Alexander,Rahul Dhumale,John Eatwell
Publisher : Oxford University Press on Demand
Page : 329 pages
File Size : 54,7 Mb
Release : 2006
Category : Business & Economics
ISBN : 9780195166989

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Global Governance of Financial Systems by Kern Alexander,Rahul Dhumale,John Eatwell Pdf

The book sets forth the economic rationale for international financial regulation and what role, if any, international regulation can play in effectively managing systemic risk while providing accountability to all affected nations. The book suggests that a particular type of global governance structure is necessary to have more efficient regulation of the international financial system.

Author : Kreis Yvonne,Leisen Dietmar,Ponce Jorge
Publisher : World Scientific
Page : 196 pages
File Size : 55,5 Mb
Release : 2019-06-04
Category : Business & Economics
ISBN : 9789811201073

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Systemic Risk: History, Measurement And Regulation by Kreis Yvonne,Leisen Dietmar,Ponce Jorge Pdf

Systemic Risk: History, Measurement and Regulation presents an overview of this emerging form of risk from a global perspective. Systemic risks endanger entire financial systems, not just individual financial institutions. In this volume, the authors review how systemic risk has evolved over the last 40 years across continents to come to the forefront of regulatory attention. They then discuss transmissions channels, provide a review of systemic risk measures, and describe new regulations that have been introduced, as well as the theory and practice of financial stability committees that have been set up internationally. Overall, the book provides a practical guide to understand, identify, assess and control systemic risk.While the financial research on systemic risk has strongly increased since the events of 2008, this book is a first in providing a detailed yet concise overview of the topic, covering the history of systemic risk, its measurement, and its regulation. The authors provide both academic and practitioner-oriented insights, and draw on their different regions of expertise to provide a global perspective on systemic risk.

Author : Mads Andenas,Gudula Deipenbrock
Publisher : Springer
Page : 437 pages
File Size : 46,8 Mb
Release : 2016-08-16
Category : Law
ISBN : 9783319321745

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Regulating and Supervising European Financial Markets by Mads Andenas,Gudula Deipenbrock Pdf

The book analyses the institutions of the European financial market supervision and the challenges of financial markets. The current European supervisory structure for financial markets represents a major development in European supervisory history. Its operation however has to be explored and analysed critically. Has it gone far enough to provide a sufficiently comprehensive and resilient system to reduce or mitigate systemic risks and handle financial crises? Some claim it has gone too far already. Fresh and rigorous critical legal and economic analysis from an independent scholarly perspective are needed to assess whether the institutional design of the European supervisory architecture has proved itself to be an efficient and effective model. This book discusses many dimensions of the structure and workings of the European system from various angles providing different dimensions. The book makes an important contribution to the limited literature on financial market supervision.

Author : United States. Congress. House. Committee on Financial Services
Publisher : Unknown
Page : 192 pages
File Size : 54,5 Mb
Release : 2009
Category : Business & Economics
ISBN : PSU:000066768531

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Perspectives on Regulation of Systemic Risk in the Financial Services Industry by United States. Congress. House. Committee on Financial Services Pdf

Author : Iain G MacNeil,Justin O'Brien
Publisher : Bloomsbury Publishing
Page : 773 pages
File Size : 40,7 Mb
Release : 2010-03-12
Category : Law
ISBN : 9781847317544

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The Future of Financial Regulation by Iain G MacNeil,Justin O'Brien Pdf

The Future of Financial Regulation is an edited collection of papers presented at a major conference at the University of Glasgow in spring 2009, co-sponsored by the Economic and Social Research Council World Economy and Finance Programme and the the Australian Research Council Governance Research Network. It draws together a variety of different perspectives on the international financial crisis which began in August 2007 and later turned into a more widespread economic crisis following the collapse of Lehman Brothers in the autumn of 2008. Spring 2009 was in many respects the nadir since valuations in financial markets had reached their low point and crisis management rather than regulatory reform was the main focus of attention. The conference and book were deliberately framed as an attempt to re-focus attention from the former to the latter. The first part of the book focuses on the context of the crisis, discussing the general characteristics of financial crises and the specific influences that were at work this time round. The second part focuses more specifically on regulatory techniques and practices implicated in the crisis, noting in particular an over-reliance on the capacity of regulators and financial institutions to manage risk and on the capacity of markets to self-correct. The third part focuses on the role of governance and ethics in the crisis and in particular the need for a common ethical framework to underpin governance practices and to provide greater clarity in the design of accountability mechanisms. The final part focuses on the trajectory of regulatory reform, noting the considerable potential for change as a result of the role of the state in the rescue and recuperation of the financial system and stressing the need for fundamental re-appraisal of business and regulatory models.

Author : Eilís Ferran,Charles Albert Eric Goodhart
Publisher : Hart Publishing
Page : 357 pages
File Size : 40,5 Mb
Release : 2001-09-11
Category : Law
ISBN : 9781841132792

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Regulating Financial Services and Markets in the 21st Century by Eilís Ferran,Charles Albert Eric Goodhart Pdf

The essays in this work offer a high-level examination of the most important issues facing financial services regulation,and the far-reaching effects of the Financial Services and Markets Act 2000 on the UK financial sector in the context of rapid global change. Taking an interdisciplinary approach the book includes contributions by many distinguished academic authorities on the law and economics of regulation, and also some of the most influential practitioners, regulators and policymakers. As such it provides an authoritative analysis of the underlying issues affecting the broad development of financial services regulation: the objectives of regulation, the responsibilities of the regulated community, the accountability of regulators, the regulation of electronic financial markets and the impact of stock market mergers, regional regulation within Europe, and the development of global financial regulation.

Author : Prasanna Gai
Publisher : OUP Oxford
Page : 200 pages
File Size : 46,8 Mb
Release : 2013-03-28
Category : Business & Economics
ISBN : 9780191654060

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Systemic Risk by Prasanna Gai Pdf

Systemic Risk opens new ground in the study of financial crises. It treats the financial system as a complex adaptive system and shows how lessons from network disciplines - such as ecology, epidemiology, and statistical mechanics - shed light on our understanding of financial stability. Using tools from network theory and economics, it suggests that financial systems are robust-yet-fragile, with knife-edge properties that are greatly exacerbated by the hoarding of funds and the fire sale of assets by banks. This book studies the damaging network consequences of the failure of large inter-connected institutions, explains how key funding markets can seize up across the entire financial system, and shows how the pursuit of secured finance by banks in the wake of the global financial crisis can generate systemic risks. The insights are then used to model banking systems calibrated to data to illustrate how financial sector regulators are beginning to quantify financial system stress.

Author : Anita Anand
Publisher : Oxford University Press
Page : 350 pages
File Size : 51,7 Mb
Release : 2016-11-24
Category : Law
ISBN : 9780191083303

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Systemic Risk, Institutional Design, and the Regulation of Financial Markets by Anita Anand Pdf

Following the recent financial crisis, regulators have been preoccupied with the concept of systemic risk in financial markets, believing that such risk could cause the markets that they oversee to implode. At the same time, they have demonstrated a certain inability to develop and implement comprehensive policies to address systemic risk. This inability is due not only to the indeterminacy inherent in the term 'systemic risk' but also to existing institutional structures which, because of their existing legal mandates, ultimately make it difficult to monitor and regulate systemic risk across an entire economic system. Bringing together leading figures in the field of financial regulation, this collection of essays explores the related concepts of systemic risk and institutional design of financial markets, responding to a number of questions: In terms of systemic risk, what precisely is the problem and what can be done about it? How should systemic risk be regulated? What should be the role of the central bank, banking authorities, and securities regulators? Should countries implement a macroprudential regulator? If not, how is macroprudential regulation to be addressed within their respective legislative schemes? What policy mechanisms can be employed when developing regulation relating to financial markets? A significant and timely examination of one of the most intractable challenges posed to financial regulation.

Author : Avinash Persaud
Publisher : Unknown
Page : 128 pages
File Size : 48,8 Mb
Release : 2015
Category : Electronic
ISBN : 143024559X

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Reinventing Financial Regulation by Avinash Persaud Pdf

Reinventing Financial Regulation offers an analysis of the fundamental flaws that plague the current system of financial regulation, one built around ideas of "risk-sensitivity" and "capital adequacy." Author Avinash Persaud argues that while some sensible reforms have been introduced, a fresh approach-centered on risk capacity-is required. When the entire regime is compromised, simply slapping bandages on each new wound will do nothing to cure the underlying disease. Reinventing Financial Regulation goes beyond an urgent call to fix our profoundly troubled and damaged financial markets. It is a blueprint for an effective financial regulation system that could very well save the future of finance. What would a well-regulated financial system look like? Until now, policymakers, financial experts, and leading academics have been content to avoid facing this question head-on. We have been offered piecemeal reforms that ultimately leave the global financial system exposed to different versions of the same risks that so recently brought it to its knees. The world economy literally cannot afford to dodge this question any longer. Persaud's goal to bring clarity and a powerful simplicity to the financial regulation process results in a systematic and apolitical framework for fixing the world's fractured financial industry and transforming its regulation-not just for today's financial climate, but once and for all.

Author : Tommaso Padoa-Schioppa
Publisher : OUP Oxford
Page : 172 pages
File Size : 47,5 Mb
Release : 2004-03-25
Category : Business & Economics
ISBN : 9780191533686

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Regulating Finance by Tommaso Padoa-Schioppa Pdf

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.

Author : Sole, Juan,Rafael Matta,Marco A. Espinosa-Vega,Charles M. Kahn
Publisher : Unknown
Page : 128 pages
File Size : 46,9 Mb
Release : 2011-08-01
Category : Electronic
ISBN : 1462306241

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Systemic Risk and Optimal Regulatory Architecture by Sole, Juan,Rafael Matta,Marco A. Espinosa-Vega,Charles M. Kahn Pdf

Until the recent financial crisis, the safety and soundness of financial institutions was assessed from the perspective of the individual institution. The financial crisis highlighted the need to take systemic externalities seriously when rethinking prudential oversight and the regulatory architecture. Current financial reform legislation worldwide reflects this intent. However, these reforms have overlooked the need to also consider regulatory agencies'' forbearance and information sharing incentives. In a political economy model that explicitly accounts for systemic connectedness, and regulators'' incentives, we show that under an expanded mandate to explicitly oversee systemic risk, regulators would be more forbearing towards systemically important institutions. We also show that when some regulators have access to information regarding an institutions'' degree of systemic importance, these regulators may have little incentive to gather and share it with other regulators. These findings suggest that (and we show conditions under which) a unified regulatory arrangement can reduce the degree of systemic risk vis-á-vis a multiple regulatory arrangement.

Author : Masahiro Kawai,Eswar Prasad
Publisher : Brookings Institution Press
Page : 441 pages
File Size : 46,7 Mb
Release : 2011
Category : Business & Economics
ISBN : 9780815704898

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Financial Market Regulation and Reforms in Emerging Markets by Masahiro Kawai,Eswar Prasad Pdf

"In the wake of the global financial crisis that began in 2008, offers a systematic overview of recent developments in regulatory frameworks in advanced and emerging-market countries, outlining challenges to improving regulation, markets, and access in developing economies"--Provided by publisher.