Skip to main content Accessibility help
×
Hostname: page-component-7479d7b7d-c9gpj Total loading time: 0 Render date: 2024-07-08T19:12:46.899Z Has data issue: false hasContentIssue false

16 - The Regulatory Responses to the Global Financial Crisis

Some Uncomfortable Questions

from Part IV - Case Studies of Financial Crises

Published online by Cambridge University Press:  24 October 2017

Edward J. Balleisen
Affiliation:
Duke University, North Carolina
Lori S. Bennear
Affiliation:
Duke University, North Carolina
Kimberly D. Krawiec
Affiliation:
Duke University, North Carolina
Jonathan B. Wiener
Affiliation:
Duke University, North Carolina
Get access

Summary

Image of the first page of this content. For PDF version, please use the ‘Save PDF’ preceeding this image.'
Type
Chapter
Information
Policy Shock
Recalibrating Risk and Regulation after Oil Spills, Nuclear Accidents and Financial Crises
, pp. 395 - 434
Publisher: Cambridge University Press
Print publication year: 2017

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Acharya, Viral, Brownlees, Christian, Engle, Robert, Farazmand, Farhang, and Richardson, Mathew, 2010. “Measuring Systemic Risk” in Acharya, Viral, Cooley, Thomas, and Richardson, Mathew (eds.), Regulating Wall Street: The Dodd-Frank Act and the New Architecture of Global Finance. Hoboken, NJ: John Wiley and Sons: 87120.CrossRefGoogle Scholar
Adrian, Tobias, and Brunnermeier, Markus K., 2011, “CoVaR,” NBER Working Paper 17454.CrossRefGoogle Scholar
Adrian, Tobias, and Shin, Hyun S., 2010, “Liquidity and Leverage,” Journal of Financial Intermediation 19(3), pp. 418–37.Google Scholar
Agur, Itai, and Sharma, Sunil, 2013, “Rules, Discretion, and Macroprudential Policy,” IMF Working Paper, 13/65. Washington, DC: International Monetary Fund.Google Scholar
Allen, F., and Gale, D., 2007, Understanding Financial Crises, Clarendon Lectures in Finance. Oxford, UK: Oxford University Press.CrossRefGoogle Scholar
Almunia, Miguel, Bénétrix, Agustín, Eichengreen, Barry, O’Rourke, Kevin H., and Rua, Gisela, 2010, “From Great Depression to Great Credit Crisis: similarities, differences and lessons.” Economic Policy 25 (62): 219–65.CrossRefGoogle Scholar
Arsov, Ivailo, Canetti, Elie, Kodres, Laura, and Mitra, Srobona, 2013, “‘Near Coincident’ Indicators of Systemic Stress,” IMF Working Paper, 13/115. Washington, DC: International Monetary Fund.Google Scholar
Atlantic Council, Thompson Reuters, and The City UK, 2013.“The Danger of Divergence: Transatlantic Financial Reform and the G-20 Agenda,” The Atlantic Council of the United States. Washington, DC.Google Scholar
Ayres, Ian, and Braithwaite, John, 1995, Responsive Regulation: Transcending the Deregulation Debate. Oxford, UK: Oxford Socio-Legal Studies.Google Scholar
Barth, James, Caprio, Gerard, and Levine, Ross, 2012, Guardians of Finance. Cambridge, MA: MIT Press.CrossRefGoogle Scholar
BCBS (Basel Committee on Banking Supervision), 2010. An Assessment of the Long-Term Economic Impact of Stronger Capital and Liquidity Requirements at www.bis.org/publ/bcbs173.pdf.Google Scholar
BCBS (Basel Committee on Banking Supervision), 2011. Basel III: A Global Regulatory Framework for more Resilient Banking Systems (Dec 2010, revised June 2011) at www.bis.org/publ/bcbs189.pdf.Google Scholar
BCBS (Basel Committee on Banking Supervision), 2013. Regulatory Consistency Assessment Programme (RCAP) – Analysis of Risk-Weighted Assets for Market Risk at www.bis.org/publ/bcbs240.htm.Google Scholar
Blancher, Nicolas, and others, 2013, “SysMo – A Practical Approach to Systemic Risk Monitoring,” IMF Working Paper 13/168. Washington, DC: International Monetary Fund.Google Scholar
Brunnermeier, Marcus, Crockett, Andrew, Goodhart, Charles, Persaud, Avinash D., and Shin, Hyun, 2009, The Fundamental Principles of Financial Regulation. Geneva, Switzerland: The International Center for Money and Banking Studies.Google Scholar
Brunnermeier, Marcus, Krishnamurthy, Arvind, and Gorton, Gary, 2013, “Liquidity Mismatch Measurement,” in Risk Topography: Systemic Risk and Macro Modeling, eds. by Brunnermeier, M.K. and Krishnamurthy, A.. Chicago, IL: NBER/University of Chicago Press: 99112.Google Scholar
Calomiris, Charles W., 2009, “The Subprime Turmoil: What’s Old, What’s New, and What’s Next,” Journal of Structured Finance, 15( 1): 652.Google Scholar
Cerutti, Eugenio, Claessens, Stijn, and McGuire, Patrick, 2011, “Systemic Risks in Global Banking: What Available Data Can Tell Us and What More Data Are Needed?” in Risk Topography: Systemic Risk and Macro Modeling, ed. by Brunnermeier, M.K. and Krishnamurthy, A.. Chicago, IL: NBER/University of Chicago Press: 235–60.Google Scholar
Čihák, Martin, Demirgüç-Kunt, Aslı, and Johnston, R. Barry, 2013, “Incentive Audits: A New Approach to Financial Regulation,” World Bank Policy Research Working Paper 6308. Washington, DC: World Bank).CrossRefGoogle Scholar
Čihák, Martin, Muñoz, Sònia, Sharifuddin, Shakira Teh, and Tintchev, Kalin, 2012, “Financial Stability Reports: What Are They Good For?” IMF Working Paper 12/1. Washington, DC: International Monetary Fund.Google Scholar
Claessens, Stijn, Evanoff, Douglas D., Kaufman, George G., and Kodres, Laura (eds.), 2011, Macro-Prudential Regulatory Policies: The New Road to Financial Stability. New Jersey: World Scientific Studies in International Economics, Pte. Ltd.Google Scholar
Claessens, Stijn, Evanoff, Douglas D., Kaufman, George G., and Laeven, Luc (eds.), 2014, Shadow Banking Within and Across National Borders. New Jersey: World Scientific Studies in International Economics, Pte. Ltd.Google Scholar
Claessens, Stijn, Ghosh, Swati and Mihet, Roxana, 2013, “Macro-Prudential Policies to Mitigate Financial System Vulnerabilities,” Journal of International Money and Finance, 39: 153–85.Google Scholar
Claessens, Stijn, and Kose, M. Ayhan 2014, “Financial Crises: Explanations, Types, and Implications,” in Claessens, Stijn, Kose, M. Ayhan, Laeven, Luc, and Valencia, Fabián (eds.), Financial Crises: Causes, Consequences, and Policy Responses, Washington, DC: IMF: 360.Google Scholar
Claessens Stijn, M. Kose, Ayhan, and Terrones, Marco 2010, “The Global Financial Crisis: How Similar? How Different? How Costly?,” Journal of Asian Economics 21: 247–64.Google Scholar
Claessens, Stijn and Ratnovski, Lev, 2013, “What Is Shadow Banking?” http://voxeu.org/article/what-shadow-banking.Google Scholar
Committee of Payments and Settlement Systems and the Technical Committee of the International Organization of Securities Commissions (CPSS-IOSCO), 2012, “Principles for Financial Market Infrastructures,” April. Basel: Bank of International Settlements.Google Scholar
Crowe, Chris W., Dell’Ariccia, Giovanni, Igan, Deniz, and Rabanal, Pau, 2011, “How to Deal with Real Estate Booms: Lessons from Country Experiences” IMF Working Paper, No. 11/91. Washington, DC: International Monetary Fund.Google Scholar
De Nicolò, Gianni, Favara, Giovanni, and Ratnovski, Lev, 2012, “Externalities and Macroprudential Policy,” IMF Staff Discussion Note 12/05. Washington, DC: International Monetary Fund.Google Scholar
Dell’Ariccia, Giovanni, Igan, Deniz, Laeven, Luc, Tong, Hui (with Bakker, Bas and Vandenbussche, Jerome), 2012, Policies for Macrofinancial Stability: How to Deal with Credit Booms, IMF Staff Discussion Note 12/05. Washington, DC: International Monetary Fund.Google Scholar
Dyck, Alexander, Morse, Adair, and Zingales, Luigi, 2010, “Who Blows the Whistle on Corporate Fraud,” Journal of Finance, 65: 2213–53.Google Scholar
Eichengreen, Barry, 2002, Financial Crises: And What to Do about Them. Oxford, UK: Oxford University Press.Google Scholar
Fielding, Eric, Lo, Andrew W., and Yang, Jian Helen, 2011, The National Transportation Safety Board: A Model For Systemic Risk Management, Journal of Investment Management, 9( 1): 1749.Google Scholar
Fostel, Ana and Geanakoplos, John, 2012, “Tranching, CDS and Asset Prices: How Financial Innovation Can Cause Bubbles and Crashes,” American Economic Journal: Macroeconomics, 4(1): 190225.Google Scholar
Fostel, Ana and Geanakoplos, John, 2013, “Reviewing the Leverage Cycle,” Working paper, George Washington University, September, http://home.gwu.edu/~afostel/forms/wpfostel5.pdf.Google Scholar
FSB (Financial Stability Board), 2011, “Key Attributes of Effective Resolution Regimes for Financial Institutions,” October, www.financialstabilityboard.org/publications/r_111104cc.pdf.Google Scholar
FSB (Financial Stability Board), 2012, “Strengthening Oversight and Regulation of Shadow Banking.” Consultative Document.Google Scholar
FSB (Financial Stability Board), 2013a, Progress and Steps Toward Ending “Too-Big-To-Fail” (TBTF), Report to the G20, September 2, 2013, www.financialstabilityboard.org/publications/r_130902.pdf.Google Scholar
FSB (Financial Stability Board), 2013b, Sixth Progress report on OTC Derivatives Reform Implementation, September 2, www.financialstabilityboard.org/publications/r_130902b.pdf.Google Scholar
FSB-IMF, September 2013, Fourth Progress report on Data Gap Initiative, Washington, DC. www.imf.org/external/np/g20/pdf/093013.pdf.Google Scholar
FSF (Financial Stability Forum), 2009, Principles for Sound Compensation Practices, April 2, 2009, www.financialstabilityboard.org/publications/r_0904b.pdf.Google Scholar
Fullenkamp, Connel and Sharma, Sunil, 2012, “Good Financial Regulation: Changing the Process is Crucial,” International Centre for Financial Regulation/Financial Times Essay, February 7.Google Scholar
Geanakoplos, John, 2010, “The Leverage Cycle,” in Acemoglu, D., Rogoff, K. and Woodford, M. (eds.), NBER Macroeconomic Annual 2009, vol. 24, Chicago, IL: University of Chicago Press: 165.Google Scholar
Genotte, Gerard, and Pyle, David H., 1991, Capital Controls and Bank Risk, Journal of Banking and Finance, 15: 805–24.Google Scholar
Haldane, Andrew G. and Madouros, Vasileios. 2012. “The Dog and the Frisbee.” Speech at the Federal Reserve Bank of Kansas City’s 36th economic policy symposium, “The Changing Policy Landscape,” Jackson Hole, Wyoming, August 31.Google Scholar
Heath, R., 2013, “Why Are the G-20 Data Gaps Initiative and the SDDS Plus Relevant for Financial Stability Analysis?” IMF Working Paper 13/6. Washington, DC: International Monetary Fund.CrossRefGoogle Scholar
International Monetary Fund, 2008, “Fair Value Accounting and Procyclicality,” Chapter 3 in the Global Financial Stability Report. Washington, DC: International Monetary Fund.Google Scholar
International Monetary Fund, 2009, “Restarting Securitization Markets: Policy Proposals and Pitfalls,” Chapter 2 in the Global Financial Stability Report. Washington, DC: International Monetary Fund.Google Scholar
International Monetary Fund, 2010, “The Uses and Abuses of Sovereign Credit Ratings,” Chapter 2 in the Global Financial Stability Report. Washington, DC: International Monetary Fund.Google Scholar
International Monetary Fund, 2011, “Towards Operationalizing Macroprudential Policies: When to Act?” Chapter 3 in Global Financial Stability Report. Washington, DC: International Monetary Fund.Google Scholar
International Monetary Fund, 2012a, “Macrofinancial Stress Testing—Principles and Practices.” Washington, DC: International Monetary Fund.Google Scholar
International Monetary Fund, 2012b, “The Key Attributes of Effective Resolution Regimes for Financial Institutions— Progress to Date and Next Steps.” Washington, DC: International Monetary Fund.Google Scholar
International Monetary Fund, 2013a, “Key Aspects of Macroprudential Policy,” Board paper. Washington, DC: International Monetary Fund.Google Scholar
International Monetary Fund, 2013b, “Key Aspects of Macroprudential Policy – Background paper.” Washington, DC: International Monetary Fund.Google Scholar
International Monetary Fund, 2014, “Global Financial Stability Report, Chapter 3 – How big is the implicit subsidy given to too-important-to-fail banks?,” forthcoming April. Washington, DC: International Monetary Fund.Google Scholar
Jiménez, Gabriel, Ongena, Steven, Peydró, José Luis, and Saurina, Jesús, 2012, “Macroprudential Policy, Countercyclical Bank Capital Buffers and Credit Supply: Evidence from the Spanish Dynamic Provisioning Experiments,” Barcelona GSE Working Paper No. 628.Google Scholar
Kiff, John, and Kisser, Michael, 2010, “Asset Securitization and Optimal Retention,” IMF Working Paper 10/74. Washington, DC: International Monetary Fund.Google Scholar
Kiff, John, Kisser, Michael, and Schumacher, Liliana, 2013, “The Effects of Through-the-cycle Rating Methodology,” IMF Working Paper 13/64. Washington, DC: International Monetary Fund.Google Scholar
Kindleberger, Charles, 1978, Manias, Panics, and Crashes: A History of Financial Crises, New York: Basic Books, revised and enlarged, 1989, 3rd ed. 1996.Google Scholar
Kiyotaki, Nobuhiro and Moore, John, 1997, “Credit Cycles,” Journal of Political Economy, 105: 211–48.Google Scholar
Kodres, Laura, 2013, “Data Needed for Macroprudential Policymaking,” in Brose, Margarita S., Flood, Mark D., Krishna, Dilip, and Nicholls, Bill (eds.), The Handbook of Financial Data and Risk Information (Cambridge: Cambridge University Press): 566–92.Google Scholar
Lim, Cheng-Hoon, Columba, F., Costa, A., Kongsamut, P., Otani, A., Saiyid, M., Wezel, T., and Wu, X., 2011, “Macroprudential Policy: What Instruments and How to Use Them, Lessons from Country Experiences,” IMF Working Paper 11/238. Washington, DC: International Monetary Fund.Google Scholar
Macroeconomic Assessment Group (MAG, formed by Basel Committee on Banking Supervision and the Financial Stability Board), 2010. “Assessing the macroeconomic impact of the transition to stronger capital and liquidity requirements – Interim Report,” at www.bis.org/publ/othp10.htmGoogle Scholar
MAG on Derivatives, 2013 “Macroeconomic Impact Assessment of OTC Derivatives Regulatory Reforms,” August. Basel: Bank of International Settlements. www.bis.org/publ/othp20.htm.Google Scholar
Nier, Erlend W., Osiński, Jacek, Jácome, Luis I., and Madrid, Pamela, 2011, “Institutional Models for Macroprudential Policy,” IMF Staff Discussion Note 11/18 and Working Paper 11/250. Washington, DC: International Monetary Fund.Google Scholar
Omarova, Saule T., 2010, “Rethinking the Future of Self-Regulation in the Financial Industry,” Brooklyn Journal of International Law, 35(3): 665706,Google Scholar
Osiński, Jacek, Seal, Katharine, and Hoogduin, Lex, 2013, “Macroprudential and Microprudential Policies: Towards Cohabitation,” IMF Staff Discussion Note 13/05. Washington, DC: International Monetary Fund.Google Scholar
Partnoy, Frank, 2010, “Overdependence on Credit Ratings Was a Primary Cause of the Crisis,” in Mitchell, Lawrence and Wilmarth, Arthur (eds.), The Panic Of 2008: Causes, Consequences, and Implications for Reform. Northhampton, MA: Edward Elgar Press: 116–31.Google Scholar
Reinhart, Carmen, and Rogoff, Kenneth, 2009, This Time is Different: Eight Centuries of Financial Folly. Princeton, NJ: Princeton University Press.Google Scholar
Reinhart, Carmen, and Rogoff, Kenneth, 2013, “Banking Crises: An Equal Opportunity Menace,” Journal of Banking and Finance, 37(11): 4557–73.Google Scholar
Santos, André Oliveira, and Elliott, Douglas, 2012, “Estimating the Costs of Financial Regulation,” Staff Discussion Note12/11, IMF. September. Washington, DC.Google Scholar
Saurina, Jesús, 2009, Loan Loss Provisions in Spain. A Working Macro-Prudential Tool. Revista de Estabilidad Financiera, 17: 1126.Google Scholar
Severo, Tiago, 2012, “Measuring Systemic Liquidity Risk and the Cost of Liquidity Insurance,” IMF Working Paper 12/194. Washington, DC: International Monetary Fund.Google Scholar
Ueda, Kenichi, and di Mauro, Beatrice Weder, 2012, “Quantifying Structural Subsidy Values for Systemically Important Financial Institutions,” IMF Working Paper 12/128. Washington, DC.Google Scholar
Viñals, José, Fiechter, Jonathan, Pazarbasioglu, Ceyla, Kodres, Laura, Narain, Aditya, and Moretti, Marina, 2010, “Shaping the New Financial System,” Staff Position Note, 10/15. Washington, DC: International Monetary Fund.Google Scholar
Weil, David, Fung, Archon, Graham, Mary, and Fagotta, Elena, 2006, “The Effectiveness of Regulatory Disclosure Policies,” Journal of Policy Analysis and Management, 25( 1): 155–81.Google Scholar
Wellink, A.H.E.M, 2009, “The Future of Supervision,” Speech given at a FSI High Level Seminar, Cape Town, South Africa, January 29, www.dnb.nl/en/news/news-and-archive/speeches-2009/dnb212415.jsp.Google Scholar
World Bank, 2013, Global Financial Development Report, Rethinking the Role of the State in Finance, Washington, DC: World Bank.Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×