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Could it Happen in the EU? An Analysis of Loss Distribution between Shareholders and AT1 Bondholders under EU Law Journal of Financial Regulation Pub Date : 2024-04-08 Sjur Swensen Ellingsæter
In March 2023, the Swiss bank Credit Suisse’s so-called Additional Tier 1 (AT1) bonds were written down to facilitate the bank being taken over by UBS, its national rival. Ensuing discussion and market reactions went well beyond Swiss borders, as the write-down was completed without Credit Suisse’s shareholders first being wiped out, thereby deviating from the principle that shareholders bear losses
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The European Securitization Market: Effects of an Uneven Regulatory Playing Field Journal of Financial Regulation Pub Date : 2024-03-27 Thomas Papadogiannis Varouchakis
This article critically assesses the European securitization industry’s claim of the existence of an uneven regulatory playing field for securitization structures vis-à-vis financial instruments deemed ‘neighbouring’ to securitization by the industry, like whole loan pools, corporate bonds, and covered bonds. According to market participants, the adverse regulatory treatment of securitization is negatively
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New Technologies and the Future Governance of Bank Run Risk Journal of Financial Regulation Pub Date : 2024-03-15 Signe Krogstrup, Thomas Sangill
The banking turmoil in March 2023 and the associated public interventions to prevent or reduce the risk of a systemic fallout underscore the fact that despite banking systems being in a much better shape in many countries relative to the position prior to the global financial crisis, some bank run risk remains. In fact, bank run risk may be increasing. As fintech and new technologies transform banking
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Decentralized Finance (DeFi): A Functional Approach Journal of Financial Regulation Pub Date : 2024-01-06 Matteo Aquilina, Jon Frost, Andreas Schrimpf
‘Decentralized finance’ (DeFi) refers to a range of applications in the crypto-asset space that seek to disintermediate the provision of financial services through reliance on self-executing computer code (‘smart contracts’). DeFi has so far been mainly self-referential in that it has largely facilitated the financing and trading of crypto-assets rather than providing intermediation services to support
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An Economic Case against Public Banking, and a Case for It Journal of Financial Regulation Pub Date : 2024-01-06 Prasad Krishnamurthy, Tucker Cochenour
In this article, we examine the economics of public consumer banking in the United States. Public expenditures on consumer banking can take the form of price subsidies or direct provision. The economic case for price subsidies is weak because the evidence suggests most unbanked consumers would prefer a cash grant. The economic case for public provision is also weak because the existing market failures
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A Study on Central Banks and Social Responsibility: the Case of the ESCB Journal of Financial Regulation Pub Date : 2023-11-23 Raffaele Felicetti
Can and should central banks have a social responsibility (‘central banks’ social responsibility’—CBSR) to play a role in social issues, such as economic inequality? This article provides a conceptual account and analysis of the benefits and challenges associated with CBSR. After showing that CBSR is gaining momentum through the pull of influential actors including central banks themselves, policy-makers
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‘Nobody Is Proud of Soft Dollars’: the Impact of MiFID II on US Financial Markets Journal of Financial Regulation Pub Date : 2023-10-19 Howell E Jackson, Jeffery Y Zhang
Scholars and policy makers have long debated whether securities firms should be allowed to bundle the cost of execution services with the cost of research. Investor advocates condemn the practice whereas industry representatives defend it. In 2018, as part of the Markets in Financial Instruments Directive II (MiFID II) legislative regime, the EU forced the unbundling of commission charges, diverging
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Risk, Contract Terms, and Maturity in the Sovereign Debt Market Journal of Financial Regulation Pub Date : 2023-09-06 Michael Bradley, Irving Arturo De Lira Salvatierra, Mitu Gulati, Ugo Panizza
In this article, we examine the relations between risk, the choice of foreign or local contract terms (parameters), and maturity in the sovereign debt market. Our primary finding is that the maturities of bonds that carry a meaningful degree of risk are greater when the bonds are written under foreign parameters. This finding is consistent with the Credible Commitment Theory. Relinquishing certain
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The Systemic Risk Council in Denmark: Assessing Strengths and Weaknesses Journal of Financial Regulation Pub Date : 2023-06-09 Svend E Hougaard Jensen, Thomas Sangill
Like similar bodies in several other countries, the Systemic Risk Council in Denmark was established in response to the global financial crisis. This article first outlines the Council’s design and performance, and then discusses the need for changes to the Council’s remit, governance, powers, and communication with the public. While the design of systemic risk councils varies a lot across countries
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Artificial Intelligence Authoring Financial Recommendations: Comparative Australian Evidence Journal of Financial Regulation Pub Date : 2023-05-16 Ben Neilson
This article explores the use of artificial intelligence software to create financial recommendations. It seeks to define the impacts and outline the benefits of using ChatGPT software in the highly regulated Australian financial sector. ChatGPT was asked to create a financial recommendation, which was evaluated against the relevant regulations and the recommendations of existing professionals and
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Federal Home Loan Banks and Financial Stability Journal of Financial Regulation Pub Date : 2023-03-16 Stefan Gissler, Borghan Narajabad, Daniel K Tarullo
The Federal Home Loan Banks (FHLBs) are the less well-known siblings of Fannie Mae and Freddie Mac. Since these government-sponsored enterprises were created in 1932, changes in housing finance markets have rendered largely irrelevant their original purpose of increasing the availability of mortgages. Yet the level and scope of their activities have increased dramatically in recent decades. These activities
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International Competitiveness and Financial Regulators’ Mandates: Coming Around Again in the UK Journal of Financial Regulation Pub Date : 2023-03-07 Eilís Ferran
Using post-Brexit regulatory freedom to strengthen the financial sector has been seen as a priority for the UK government under the Conservative Party following the 2017 general election. The laying before Parliament of the Financial Services and Markets Bill (July 2022) marked the start of a multi-year process aiming to transform the regulatory framework. Adding a competitiveness and growth secondary
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Badges of Misconduct: Consumer Rules to Avoid Abusive Financial Advisers Journal of Financial Regulation Pub Date : 2023-02-21 Jeffrey Camarda, Steven J Lee, Pieter de Jong, Jerusha Lee
The financial advisory industry in the USA lacks professional standardization/regulation. There are few guideposts to assess adviser quality, and risks to consumer welfare abound. Some 91% of investment advisers operate on conflicted sales commission licences, although many market themselves as fiduciaries. Using an adviser misconduct scoring framework we report specific misconduct ratings for each
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A Theoretical Framework for Law and Macro-Finance Journal of Financial Regulation Pub Date : 2022-09-09 M Konrad Borowicz
This article considers the effects of legal protections of creditors within the macro-financial theory of leverage cycles developed by John Geanakoplos. The theory posits that leverage is procyclical. I propose a theoretical framework, ‘Law and Macro-Finance’, comprising two main clams: (1) the strength of legal protections of creditors has an impact on the quantum of debt creditors are willing to
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Walking a Tightrope: Financial Regulation, Climate Change, and the Transition to a Low-Carbon Economy Journal of Financial Regulation Pub Date : 2022-08-24 Dimitri Demekas, Pierpaolo Grippa
As with the global financial crisis, there are once again demands on central banks and financial regulators to take on new responsibilities, this time for supporting the transition to a low-carbon economy. Regulators can indeed facilitate the reorientation of financial flows necessary for the transition. But they may find themselves walking a tightrope, having to balance exaggerated expectations against
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MiFID II and the Regulation of Multilateral Trading in OTC Derivatives: Is the OTF Fit for Purpose? Journal of Financial Regulation Pub Date : 2022-08-16 Simon Helm
This article identifies barriers to the complete implementation of the organized trading facility (OTF) as a new category of trading venue under the Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II). It argues that attempts to reconcile the competing claims of incumbent regulated markets and dealer banks operating broker crossing networks in the cash securities markets led
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Introducing the Revised and Updated Financial Reform Database Journal of Financial Regulation Pub Date : 2022-07-05 Sawa Omori
This article introduces a revised and updated version of the Financial Reform Database, which is widely used by economists and political economists. In this revision, country coverage is extended from 91 to 100 economies. Also, the time period covered is extended from 1973–2005 to 1973–2013. Furthermore, the coding rule relating to the enhancement of banking supervision is revised to enhance the clarity
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A Risky Bet: Climate Change and the EU’s Microprudential Framework for Banks Journal of Financial Regulation Pub Date : 2022-04-01 Agnieszka Smoleńska,Jens van 't Klooster
Abstract Banking regulation and supervision have a key role to play in realizing the EU’s climate change objectives. In this article, we analyse the EU-level initiatives currently underway to decarbonize the banking system, in particular with regard to the microprudential rulebook. We document how regulators work hard to fit climate policy into the existing objectives of the microprudential framework
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Retaining Influence in Post-Brexit International Financial Regulation: Lessons from the UK’s FinTech Framework Journal of Financial Regulation Pub Date : 2022-04-01 Pedro Schilling de Carvalho
Abstract A common rhetoric has emerged among UK authorities when it comes to how to deal with a potential loss of influence in the regulation of financial services after Brexit: as divergence from the EU increases, it will be necessary to retain the UK’s influence as a rule maker through an enhanced engagement via international standard-setting bodies (ISSBs). This article argues that placing an excessive
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Corrigendum to: Banking Regulatory Constraints and Personal Bankruptcy Filings in the US Journal of Financial Regulation Pub Date : 2022-03-18 Chintal A Desai,David H Downs
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The Role of Disclosure in Green Finance Journal of Financial Regulation Pub Date : 2022-01-11 Sebastian Steuer, Tobias H Tröger
In this article, we study the design features of disclosure regulations that seek to trigger the green transition of the global economy and ask whether such interventions are likely to bring about sufficient market discipline to achieve socially optimal climate targets. Transparency obligations stipulated in green finance regulation can be categorized as either compelling the standardized disclosure
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Banking Regulatory Constraints and Personal Bankruptcy Filings in the US Journal of Financial Regulation Pub Date : 2021-11-19 Chintal A Desai, David H Downs
The economic well-being of a household depends on its access to credit and also its access to a legal system for managing over-indebtedness. Our hypothesis is that the removal of regulatory constraints on a bank’s ability to expand in new geographic markets increases households’ access to credit, which in turn, contributes to a rise in consumer defaults. In the US, we find a net increase in Chapter
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The Influence of the Risk Reward Profile and of the Colour of Disclosure Documents on Attractiveness Perception of Mutual Fund Products Journal of Financial Regulation Pub Date : 2021-11-16 Candida Bussoli, Maria Gabriella Ceravolo, Lucrezia Fattobene, GianMario Raggetti
This study investigates the influence of features of the mutual fund product and of the disclosure document on financial decision making. Using a laboratory setting, we show that the higher the risk and reward profile (RRP) of the product, the poorer the perception of the product. When the colour red (or blue) is applied to graphics (the RRP scale and the graph of the past performance) in the documents
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Digital Euro, Monetary Objects, and Price Stability: A Legal Analysis Journal of Financial Regulation Pub Date : 2021-09-08 Corinne Zellweger-Gutknecht, Benjamin Geva, Seraina Neva Grünewald
The Eurosystem is mandated to safeguard price stability according to article 127 of the Treaty on the Functioning of the European Union (TFEU). Based on a theoretical and policy-oriented approach, this article sheds light on a second public good with enormous practical relevance both for financial markets and institutions as well as for the general public that the Eurosystem, and ultimately the European
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Marginal Benefits of the Core Securities Laws Journal of Financial Regulation Pub Date : 2021-07-22 Kevin S Haeberle
To every thing there is a season. In the area of securities regulation in the United States, it is the season for expansion. This article shows why such expansion should not involve use of the core issuer disclosure, fraud, and insider trading laws to reduce information asymmetry in the stock market in the name of investor protection. I argue that any expansion of these laws focused on this secondary
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The German Federal Constitutional Court Ruling and the European Central Bank’s Strategy Journal of Financial Regulation Pub Date : 2021-06-09 Lars P Feld, Volker Wieland
The ruling of the German Federal Constitutional Court and its call for conducting and communicating proportionality assessments regarding monetary policy have been the subject of some controversy. However, it can also be understood as a way to strengthen the de facto independence of the European Central Bank (ECB). This article shows how a regular proportionality check could be integrated in the ECB’s
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Enforcement against the Biggest Banks Journal of Financial Regulation Pub Date : 2021-05-04 David Zaring
Being a big bank means the regular payment of huge fines to a number of different regulators, paired with profuse apologies, and promises to do better next time. This article makes use of a hand-collected dataset to show how this enforcement worked in the United States after the passage of the Dodd-Frank Wall Street Reform Act. American regulators have tended to hunt the big banks in packs, with multiple
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Legal Air Cover Journal of Financial Regulation Pub Date : 2021-04-01 Patrick Bolton, Ugo Panizza, Mitu Gulati
The economic harm being caused by the novel coronavirus may soon result in multiple sovereign debtors moving into default territory, but the existing playbook for dealing with multi-sovereign emerging market debt crises is blank. Currently, the only way to deal with a debt crisis is to carry out protracted country-by-country and contract-by-contract negotiated workouts. Expert groups are attempting
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The Impact of Cryptocurrency Regulation on Trading Markets Journal of Financial Regulation Pub Date : 2021-03-10 Brian D Feinstein, Kevin Werbach
The meteoric growth of global cryptocurrency markets presents novel challenges to regulators. Some policymakers and scholars warn that regulation will cause trading activity to cross borders into less-regulated jurisdictions—or even smother a promising new financial asset class. Others believe regulatory actions will stimulate activity by providing clarity to market participants. Standing behind this
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Banks’ Sovereign Exposures: In Search of New Rules Journal of Financial Regulation Pub Date : 2021-02-08 Angelo Baglioni, Francesco Cefalà
In this article, we examine the reform of the prudential treatment of banks’ sovereign exposures with the purpose of introducing risk-sensitive capital charges and limiting home bias. We consider six different options and measure their impact on the common equity Tier 1 (CET1) ratio of 82 banks fom 10 euro-area countries, participating in the 2019 European Banking Authority EU-wide transparency exercise
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Is Dodd-Frank the Biggest Law Ever? Journal of Financial Regulation Pub Date : 2021-02-07 Patrick A McLaughlin, Oliver Sherouse, Mark Febrizio, M Scott King
The passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010 continued a trend toward lengthier and more complex acts of Congress. In this article, we use novel metrics of the size, scope, and complexity of acts of Congress to assess Dodd-Frank’s place in this trend. Our analysis is consistent with the hypothesis that, in terms of its regulatory effects, Dodd-Frank is the biggest
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Twelve Years after the Financial Crisis—Too-big-to-fail is still with us Journal of Financial Regulation Pub Date : 2021-01-05 Martin Hellwig
This article comments on the Consultation Report published by the Financial Stability Board (FSB) evaluating the success of regulatory reforms since the global financial crisis of 2007–2009. It argues that the FSB’s assessment of the role of equity is too narrow, being phrased in terms of bankruptcy avoidance and risk-taking incentives, without attention to debt overhang creating distortions in funding
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The Enduring Legacy of the Dodd-Frank Act’s Derivatives Reforms Journal of Financial Regulation Pub Date : 2020-10-02 Tarbert H.
ABSTRACTDespite the shortcomings of the Dodd-Frank Act, this article argues that the two parts most relevant to derivatives—Titles VII and VIII—are likely to endure. Title VII, which covers the trading of derivatives, especially swaps, generally strikes the right balance between preserving the vibrancy of the US derivatives markets and mitigating risk to market participants and the US financial system
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Decentralized Finance Journal of Financial Regulation Pub Date : 2020-09-30 Zetzsche D, Arner D, Buckley R.
ABSTRACTDeFi (‘decentralized finance’) has joined FinTech (‘financial technology’), RegTech (‘regulatory technology’), cryptocurrencies, and digital assets as one of the most discussed emerging technological evolutions in global finance. Yet little is really understood about its meaning, legal implications, and policy consequences. In this article we introduce DeFi, put DeFi in the context of the traditional
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The Quest for a European Safe Asset—A Comparative Legal Analysis of Sovereign Bond-Backed Securities, E-Bonds, Purple Bonds, and Coronabonds Journal of Financial Regulation Pub Date : 2020-08-13 Grund S.
AbstractThe European sovereign debt crisis and, more recently, the COVID-19 pandemic have revealed the European Economic and Monetary Union’s fragility, which essentially emanates from the inherent tension between a single monetary policy and decentralized fiscal policies. To cushion economic and financial shocks and sever the sovereign-bank doom loop, different proposals to create a common public
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Unregulated Algorithmic Trading: Testing the Boundaries of the European Union Algorithmic Trading Regime Journal of Financial Regulation Pub Date : 2020-08-05 Martins Pereira C.
AbstractTrading in modern equity markets has come to be dominated by machines and algorithms. However, there is significant concern over the impact of algorithmic trading on market quality and a number of jurisdictions have moved to address the risks associated with this new type of trading. The European Union has been no exception to this trend.This article argues that while the European Union algorithmic
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The Role of Bank Management in the EU Resolution Regime for NPLs Journal of Financial Regulation Pub Date : 2020-08-05 Kokkinis A, Miglionico A.
ABSTRACTDuring the global financial crisis, the growth of non-performing loans (NPLs) was partly a consequence of lack of regulatory oversight and poor bank internal processes. NPLs require intrusive monitoring tools and effective corporate governance is crucial in dealing with the deterioration of loans; however, perverse incentives to delay their recognition leave the process at risk. The EU legislation
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Should Denmark and Sweden Join the Banking Union? Journal of Financial Regulation Pub Date : 2020-08-05 Hougaard Jensen S, Schoenmaker D.
AbstractAn important policy discussion on joining the banking union is currently taking place in Denmark and Sweden. In this article we review the pros and cons of joining. The main rationale for joining the banking union is the importance of cross-border banking in the EU internal market. Reviewing the banking systems, we find that banks in Denmark and Sweden have the same cross-border characteristics
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Hybrid and Cyber Security Threats and the EU’s Financial System Journal of Financial Regulation Pub Date : 2020-08-04 Demertzis M, Wolff G.
ABSTRACTIncreasing cyber and hybrid risks will test the European Union’s system of fragmentation on issues of security, but centralization on financial and other economic issues. This asymmetry was not an obstacle in a world in which security threats were more contained or of a different nature. But the world is changing. In this article, we document the rise in cyber attacks in the EU. Meanwhile,
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When Governments Promise to Prioritize Public Debt: Do Markets Care? Journal of Financial Regulation Pub Date : 2020-03-20 Mitu Gulati,Ugo Panizza,W Mark C Weidemaier,Gracie Willingham
Abstract During the European sovereign debt crisis of 2011–13, some nations faced with rising borrowing costs adopted commitments to treat bondholders as priority claimants. That is, if there were a shortage of funds, bondholders would be paid first. In this article, we analyse the prevalence and variety of these types of commitments and ask whether they impact borrowing costs. We examine a reform
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The Role of Deposit Insurance in Bank Resolution Journal of Financial Regulation Pub Date : 2020-03-20 Christian Hofmann
Abstract Deposit Insurance Schemes (DIS) are mechanisms that reimburse depositors when banks default; however, they also serve important functions in bank resolution proceedings. Whereas it is evident that DIS should contribute to the rescue of banks’ critical financial functions in such resolution scenarios, the resulting questions of who should benefit from their payments and whether these payments
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Restructuring Euro Area Sovereign Debt: Have the Options Narrowed? Journal of Financial Regulation Pub Date : 2020-03-20 W Mark C Weidemaier
This Essay examines the intersection between two key attributes of sovereign debt governance in the Euro Area. First, sovereigns mostly issue bonds governed by their own law. This “local law advantage” should make debt restructuring comparatively easy, for the sovereign can change the law to reduce its debt. The second attribute is the so-called Euro CAC, a contractbased restructuring mechanism mandated
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Technology v Technocracy: Fintech as a Regulatory Challenge Journal of Financial Regulation Pub Date : 2020-03-20 Saule T Omarova
Technology is a tool. How to use it, for what purposes and to what effects, is a choice. What does this choice involve in the context of fintech? And how can it be translated into a coherent strategy of fintech regulation? These questions are at the heart of this article. Taking a broad view of fintech as a systemic force disrupting the very enterprise of financial regulation, as opposed to any particular
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Equity Finance: Matching Liability to Power Journal of Financial Regulation Pub Date : 2020-03-11 C A E Goodhart, R M Lastra
There is widespread concern that the bonus culture for senior managers in limited liability companies is having adverse effects, e.g. on risk-taking, leverage and lower longer-term investment. The moral hazard of limited liability was appreciated in the 19th century, when unlimited or multiple liability, especially for bankers, was widely adopted. Whereas outside, notably retail, investors still need
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The Disruption of the Prudential Regulatory Framework Journal of Financial Regulation Pub Date : 2019-09-01 Paolo Siciliani
ABSTRACT This article first explores how the prudential regulatory framework may be drastically changed as a result of the adoption of regtech and suptech innovations. The adoption of a shared data architecture, whereby the regulator is provided with seamless access to the accounts of regulated firms, may result in the development of a centralized approach to regulatory modelling, thus bypassing the
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The Myth of Diversification: The Destabilizing Impact of Diversification on Financial Institutions Journal of Financial Regulation Pub Date : 2019-09-01 Kwon-Yong Jin
Abstract This article analyses the impact of asset and activity diversification on the stability of major financial institutions. Diversification is typically viewed as a positive element in risk management. However, examining recent examples concerning diversified multinational financial institutions and a theoretical model of failure risk facing them, this article demonstrates that under certain
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Controlling the Long-Term Problem of Short-Term Funding Journal of Financial Regulation Pub Date : 2019-08-23 Brian A Johnson, Hal S Scott
While financial crises can be triggered by a number of causes, runs on short-term liabilities are at the heart of all financial crises with the recent 2007-2009 financial crisis being no exception. Given the unpredictability of crisis triggers and the overwhelming predictability of short-term funding’s role in financial crises, legislative and regulatory responses to the recent financial crisis should
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Volume Limit: An Effective Response to the India Flash Crash? Journal of Financial Regulation Pub Date : 2019-08-07 Viktoria Dalko,Michael H Wang
Abstract This paper assesses the recently enacted securities regulation, called the volume limit, by the Securities and Exchange Board of India. It reviews the literature on the negative consequences of large sale volumes on the stability of the stock market. The paper also examines the recent development of high-frequency trading in India. The two investigations unveil areas in which the regulation
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The EU’s Regulatory Commitment to a European Harmonized Pension Product (PEPP): The Portability of Pension Rights vis-à-vis the Free Movement of Capital Journal of Financial Regulation Pub Date : 2019-08-07 Kyra Borg, Andrea Minto, Hans van Meerten
European demographic structure and age composition are currently in a state of flux—life expectancy has increased, fertility rates have dropped, and baby-boomers have reached retirement age. The implications of these changes, coupled with the fragmented market for personal pension products throughout the EU are vast and call for close scrutiny of the relationship between financial and pension markets
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Ignorance, Debt, and Cryptocurrencies: The Old and the New in the Law and Economics of Concurrent Currencies* Journal of Financial Regulation Pub Date : 2019-03-01 Hossein Nabilou,André Prüm
Abstract Cryptocurrencies are expected to have a significant impact on banking, finance, and monetary systems. Due to the uncertainty as to the possible future trajectories of the evolving cryptocurrency ecosystem, governments have taken a relatively hands-off approach to regulating such currencies. This approach may be justified within the theoretical information-economics framework of this paper
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State Contingent Debt as Insurance for Euro Area Sovereigns Journal of Financial Regulation Pub Date : 2019-03-01 Maria Demertzis, Stavros A Zenios
The authors provide a novel angle to the ongoing discussions by the G20 on sovereign contingent debt and argue that contingent debt could provide market-based insurance to protect the euro area from future debt crises. Risk-sharing with the markets is a practical way forward in the context of the Franco-German debate on risk-sharing among EU member states vs system-wide risk reduction. The financial
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Inaction in Macro-prudential Supervision: Assessing the EU’s Response Journal of Financial Regulation Pub Date : 2019-03-01 Pierre Schammo
In the macro-prudential literature, ‘inaction bias’ describes the supposed tendency of macro-prudential actors to favour inaction over action when considering the use of macro-prudential tools. While inaction bias is a topic of much interest in macro-prudential policy circles, it has received scant attention from legal scholarship. The aim of this article is to contribute to filling this gap by studying
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Third-Country Equivalence and Access to the EU Financial Markets Including in Case of Brexit Journal of Financial Regulation Pub Date : 2018-10-10 Eddy Wymeersch
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The Financial Stability Aspects of the EU-wide Stress Test Journal of Financial Regulation Pub Date : 2018-10-09 André Ebner
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The Case for Market-Based Stress Tests Journal of Financial Regulation Pub Date : 2018-10-09 John Vickers
I underwent a stress test of a personal kind at 8 o’clock one morning three years ago when I was about to be interviewed on BBC Radio’s Today programme by the formidable John Humphrys. The subject was bank capital requirements, on which I thought the Bank of England had adopted a softer than prudent policy stance.1 A few minutes before the interview, as the news was being read, John Humphrys came into
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Should Fair-lending Investigators Better Mix Qualitative and Quantitative Methods? Journal of Financial Regulation Pub Date : 2018-10-05 Christopher E Cosans
Abstract The author examines a controversy over the methods used by federal agencies to enforce fair-lending laws. Some hold that investigators should use primarily qualitative reviews of documents in loan files in their investigations. Others hold that the qualitative methodology of file reviews is inadequate and needs to be supplemented or replaced by quantitative statistical methods. The author
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The Disruption of Retail Banking: A Competition Analysis of the Implications for Financial Stability and Monetary Policy Journal of Financial Regulation Pub Date : 2018-09-10 Paolo Siciliani
This article analyses the competition impact of the implementation of two recent regulatory reforms aimed at boosting competition in retail banking by reducing consumer search and switching costs and empowering different business models whereby non-bank operators are able to compete with banks with respect to specific activities such as the provision of payment services. The article investigates how
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Sovereign Bond Contracts: Flaws in the Public Data? Journal of Financial Regulation Pub Date : 2018-09-01 Andrea E Kropp,W Mark C Weidemaier,Mitu Gulati
Abstract Commercial databases now make available to paying clients information about the legal terms in sovereign loan contracts. This information is important to academic researchers, to policy institutions such as the International Monetary Fund, and to investors and other market actors. For a random sample of 10 countries, the authors compare this data to a hand-coded sample of bond terms. They
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How Effective are the Order-to-Trade Ratio and Resting Time Regulations? Journal of Financial Regulation Pub Date : 2018-08-31 Viktoria Dalko,Michael H Wang
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Building a Stable European Deposit Insurance Scheme Journal of Financial Regulation Pub Date : 2018-08-09 Dirk Schoenmaker