scholarly journals Global Financial Development Report 2019/2020: Bank Regulation and Supervision a Decade after the Global Financial Crisis

2019 ◽  
Author(s):  
Keyword(s):  
Financial Crisis ◽  
Financial Development ◽  
Global Financial Crisis ◽  
Bank Regulation ◽  
Regulation And Supervision ◽  
Bank Regulation And Supervision ◽  
The Global Financial Crisis

2. Prudential Regulation I: Capital and Liquidity Controls

2018 ◽  
Author(s):  
Ross Cranston ◽  
Emilios Avgouleas ◽  
Kristin van Zweiten ◽  
Theodor van Sante ◽  
Christoper Hare
Keyword(s):  
Financial Crisis ◽  
Moral Hazard ◽  
Global Financial Crisis ◽  
Bank Regulation ◽  
Capital Regulation ◽  
Bank Failures ◽  
Prudential Regulation ◽  
Fundamental Goal ◽  
The Global Financial Crisis ◽  
Deposit Guarantee Schemes

This chapter begins with a discussion of the reasons for bank regulation. Traditionally the focus of bank regulation has been the protection of individual institutions' stability from a depositors' run, and of depositors and deposit guarantee schemes from incurring losses in the event of bank failures. Another fundamental goal was the protection of taxpayers from a public bailout and from the kind of moral hazard that arises when public bank rescues are likely. However, in recent years, and especially since the global financial crisis the focus of bank regulation has broadened to include eliminating too-big-to-fail institutions; increasing capital cushions and introducing liquidity requirements; and enhancing the resilience of the financial system to withstand system-wide shocks. The remainder of the chapter covers prudential regulation, capital regulation, the different phases of the Basel capital framework, and the total loss absorbing capacity standard.

scholarly journals The global financial crisis and Islamic banking: the direct exposure to the crisis

2017 ◽  
Vol 12 (3) ◽  
pp. 100-112 ◽  
Author(s):  
Faisal Alqahtani ◽  
David G. Mayes
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Critical Discussion ◽  
Islamic Banking ◽  
Financial Instruments ◽  
Moral Failure ◽  
Regulation And Supervision ◽  
Direct Exposure ◽  
The Global Financial Crisis

This paper theoretically discusses and reviews the main causes of the crisis, including discrimination, moral failure, poor governance, easy credit, imprudent lending, excessive debt and leverage, and regulation and supervision failure. The implications of the crisis have been reviewed, followed by a critical discussion on the lack of direct exposure to the crisis for Islamic banking, because most, if not all, of the practices and financial instruments that are believed to be responsible for the crisis are not permitted under Islamic banking principles.

scholarly journals Global Imbalances: The Role of Institutions, Financial Development and FDI in the Context of Financial Crises

2021 ◽  
Vol 13 (1) ◽  
pp. 356
Author(s):  
Carlos A. Silva ◽  
Xavier Ordeñana ◽  
Paul Vera-Gilces ◽  
Alfredo Jiménez
Keyword(s):  
Financial Crisis ◽  
Financial Development ◽  
Current Account ◽  
Global Financial Crisis ◽  
Quality Of Institutions ◽  
Current Account Imbalances ◽  
The Global Financial Crisis ◽  
Current Account Balances

This paper examines the role of the quality of institutions, financial development and FDI on current account imbalances, which narrowed during the Global Financial Crisis. In doing so, we utilize (i) a sample of 49 advanced and emerging economies during 1984–2014; (ii) a novel three-clustered indices of institutional quality and (iii) two measures of financial development, the share of FDI and a measure of financial crisis in addition to standard determinants of the current account. We find that the better the quality of institutions and the greater the financial development, the larger are current account deficits; meanwhile, FDI contributes to boost current account balances. Moreover, financial crisis episodes tend to improve current account balances, particularly for countries that are highly open to trade and to receive FDI, as in the case of advanced economies and East Asian countries.

scholarly journals The mechanisms linking the finance-growth relationship in view of the financial crisis: an empirical investigation of the EU countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dimitrios Asteriou ◽  
Konstantinos Spanos
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Stock Market ◽  
Financial Development ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Equity Market ◽  
Private Debt ◽  
Content Type ◽  
The Global Financial Crisis

PurposeThe paper aims to explore the mechanisms linking the impact of financial development on economic growth and focuses on the long-term post-global financial crisis.Design/methodology/approachThe study employs panel data for twenty-five European Union countries over the period 1995–2017. Principal Component Analysis is employed to produce two aggregate indices, namely financial banking sector development and stock market sector development. The empirical analysis is based on estimates through the autoregressive distributed lag (ARDL) method.FindingsThe results suggest that the outbreak of the crisis has led to a disruption of the positive finance-growth relationship, and the banking sector dominates in this adverse effect. The foreknowledge of the current study is that the linking mechanisms of the negative impact of financial development on economic growth, ten years after the global financial crisis, are household debt, private debt, and non-performing loans for the banking sector, while for the equity market this is the case through savings. Interestingly, the results reveal that unemployment increase excessively the borrowers' debt level and then the non-performing loans.Research limitations/implicationsAn implication is that the increase of credit supply and any monetary expansion along with lack of regulatory control and monitoring can lead banks to a higher risk exposure through household and private debt as well as non-performing loans. Besides, the higher levels of unemployment rates call attention for the trade-off between prudential regulation on the supply of loans and economic activity, since higher unemployment affect the non-performing loans and, as a consequence discourage the demand, increase precautionary savings, and cancel or postpone investment decisions, thus, affecting the equity market.Originality/valueThe paper provides useful insights to economists and policymakers who are interested in understanding the weakness of banking and stock market sectors to promote economic growth for a long time after the global financial crisis.

scholarly journals Financial Regulation And Supervision: Theory And Practice In South Africa

2011 ◽  
Vol 10 (11) ◽  
pp. 27 ◽  
Author(s):  
Erika Botha ◽  
Daniel Makina
Keyword(s):  
South Africa ◽  
Financial Crisis ◽  
Financial Services ◽  
Financial Regulation ◽  
Global Financial Crisis ◽  
Supervisory System ◽  
Institutional Approach ◽  
Regulation And Supervision ◽  
Regulatory Systems ◽  
The Global Financial Crisis

This paper discusses the theory of financial regulation and practices in countries and South Africa in particular. One of the causes of the global financial crisis (2007-2009) often cited is inadequate or improper regulation and supervision of the financial sector. The global financial crisis revealed inadequacies of extant regulatory systems which arguably had not kept pace with financial innovation. Consequently, all major economies are reforming their regulatory systems in the aftermath. In the UK the Financial Services Authority (FSA) has devised a set of banking regulation while the USA enacted the Dodd-Frank Act to revamp the regulation of financial services. Historically, financial regulation and supervision has been premised on the silo (institutional) approach whereby institutions are regulated according to functional lines. However, in the past two decades many countries in advanced economies adopted a consolidated approach in response to the emergence of financial conglomerates whose regulation could not be adequately handled by the traditional silo approach. South Africa, a middle-income developing country, has had a regulatory and supervisory system that has been driven by the market and international trends. Having started as a institutional approach, it metamorphosed into a functional approach in the late 1980s. Since the 1990s the South African regulatory and supervisory system has had at its heart the central bank regulating the banking sector and a multi-sector regulatory approach for other non-banking financial services. Though the financial sector was largely unscathed by the global financial crisis, South Africa has also moved to reform its regulatory system to embrace the twin peak model in line with trends in related countries.

scholarly journals The More the Merrier? Evidence from the Global Financial Crisis on the Value of Multiple Requirements in Bank Regulation

2021 ◽  
Author(s):  
Marcus Buckmann ◽  
Paula Gallego Marquez ◽  
Mariana Gimpelewicz ◽  
Sujit Kapadia ◽  
Katie Rismanchi
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Bank Regulation ◽  
The Global Financial Crisis
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