scholarly journals The future of international banking regulations in response to the financial crisis of 2007/2009: After Basel III then what next?

2014 ◽  
Vol 4 (2) ◽  
pp. 28-53 ◽  
Author(s):  
Joseph E. Isebor
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Financial Stability ◽  
Basel Iii ◽  
International Banking ◽  
The Great Depression ◽  
Banking Regulations ◽  
Basel Accords ◽  
The Future ◽  
Global Financial System

The financial crisis 2007-2009 will not be forgotten in a hurry because of its impact on the global financial system almost replicating the Great Depression. Major and causal factors contributed to the financial crisis, and this prompted the establishment of Basel III to contain the crisis. Basel III introduced improved capital and liquidity rules, but still could not contain the crisis. This leaves regulators with questions of how to prevent another financial crisis in the future. Evidences suggest that the financial market is evolving because of its complex and changing nature, and so are the international banking regulations (Basel I, Basel II and Basel III) that support the system in terms of maintaining economic and financial stability. It is clear that Basel III will not stop the next financial crisis even though the Basel accords continue to evolve in response to maintaining economic and financial stability, with the core purpose of preventing another financial crisis. Uncertainties lies ahead, and regulators cannot be sure of what will likely cause the next crisis, but indications suggest that the financial markets and international banking regulations in the form of Basel accords will continue to evolve.

scholarly journals Financial Technologies of International Banking Regulations

2019 ◽  
Vol 71 ◽  
pp. 02010
Author(s):  
G.S. Panova
Keyword(s):  
Financial Markets ◽  
Banking Regulation ◽  
International Standards ◽  
International Banking ◽  
Advantages And Disadvantages ◽  
Banking Regulations ◽  
Basel Accords ◽  
Global Banking ◽  
Methodological Approaches ◽  
The Impact

The author considers the problems of banking regulation in the context of globalization. An analysis of relevant issues indicates the need to improve financial technologies for banking regulation. Basel innovations, designed to ensure the stability and uninterrupted operation of the global banking system, have led to the creation of counter-innovations by the banking sector. Basel Accords led to the development of the so-called “regulatory rally”, when increasingly sophisticated methods of regulation gave rise to increasingly inventive ways to protect the gains of the banking business. These ways sometimes became an indirect source of rising risks, and were initially taken as effective protection against these risks. The author analyzes the main advantages and disadvantages of the latest Basel Accords on Banking Supervision (Basel III) and identifies specific directions for its improvement, taking into account current practices of national and international approaches to regulating the activities of credit organizations 10 years after the global financial and banking crisis. The importance of the study is determined by the need to develop financial technologies for international banking regulations, as well as theoretical and methodological approaches that determine the interconnectedness and interdependence of financial markets. It is also important to evaluate the effectiveness of measures to regulate the activities of financial and credit institutions at the national and international levels to develop strategies and tactics for the optimal progressive development of financial markets. The purpose of the study is to develop theoretical and methodological approaches to assessing the impact of international standards on activities of Russian credit organizations.

scholarly journals Global Bank Capital and Liquidity after 30 Years of Basel Accords

2020 ◽  
Vol 13 (4) ◽  
pp. 73 ◽  
Author(s):  
Harald Benink
Keyword(s):  
Financial Crisis ◽  
Capital Requirements ◽  
International Banking ◽  
Bank Capital ◽  
Banking Supervision ◽  
Basel Accords ◽  
Capital Ratios ◽  
Working Together ◽  
Recent Financial Crisis ◽  
Global Financial System

In this paper we analyze the effectiveness of more than 30 years of efforts by international banking supervisors, working together in the Basel Committee on Banking Supervision, to harmonize capital and liquidity standards for internationally active banks. Notwithstanding the great efforts and progress made by international banking supervisors since the financial crisis of 2007–2009, two important issues require further attention. First, although bank capital ratios have been raised significantly since the recent financial crisis, they are still at historically low levels. In a world in which global debt ratios have risen even further during the past decade, this is a worrying signal of fragility in the global financial system. Second, bank liquidity requirements may have become too complex and could also have unintented and unpredictable interaction effects with bank capital requirements.

scholarly journals Evolución e impacto de la regulación bancaria internacional hasta Basilea III: el caso de América Latina = Evolution and impact of international banking regulation until Basel III: The case of Latin America

2013 ◽  
pp. 147
Author(s):  
Cristina Gutiérrez López
Keyword(s):  
Latin America ◽  
Financial Crisis ◽  
Latin American ◽  
Financial System ◽  
Banking Regulation ◽  
Basel Ii ◽  
Basel Iii ◽  
International Banking ◽  
Basel Accords ◽  
America Latina

<p>La crisis financiera ha cuestionado la efectividad de los Acuerdos de Basilea como herramienta de regulación y supervisión bancaria a nivel internacional, especialmente por la coincidencia temporal de Basilea II y los problemas del sector bancario. En el caso de América Latina, esto se une tanto a las particularidades de su sistema financiero, que ha afrontado reformas muy significativas en los últimos años, como a la forma diferencial en que la crisis financiera se ha manifestado.<br />El artículo revisa las características del esquema de regulación bancaria internacional hasta llegar al nuevo Acuerdo de Basilea III y su previsible adaptación al caso latinoamericano, con especial interés sobre los efectos en la financiación y prociclicidad.</p><p>The financial crisis has questioned Basel Accords effectiveness as regulatory and supervisory tools in the international banking area, especially because Basel II was firstly applied when banking problems started. In the Latin America case, this happens in a particular financial system, which has suffered significant reforms over the last years, and where the financial crisis has behaved in a different way.<br />The paper analyses the main characteristics of the international banking regulatory framework until current Basel III Accord. It also addresses its foreseeable adaptation to the Latin American context, with special emphasis on funding and pro-cyclicality</p>

scholarly journals The future of financial markets and regulation: what strategy for Europe?

foresight ◽  
2014 ◽  
Vol 16 (2) ◽  
pp. 95-108 ◽  
Author(s):  
Jean-Baptiste Gossé ◽  
Dominique Plihon
Keyword(s):  
Financial Markets ◽  
Capital Market ◽  
Financial Stability ◽  
Design Methodology ◽  
Financial Integration ◽  
Content Type ◽  
Realistic Option ◽  
The Future ◽  
Unstable Environment ◽  
Insight Into

Purpose – This article aims to provide insight into the future of financial markets and regulation in order to define what would be the best strategy for Europe. Design/methodology/approach – First the authors define the potential changes in financial markets and then the tools available for the regulator to tame them. Finally, they build five scenarios according to the main evolutions observed on the financial markets and on the tools used by the regulator to modify these trends. Findings – Among the five scenarios defined, two present highly unstable features since the regulator refuses to choose between financial opening and independently determining how to regulate finance in order to preserve financial stability. Three of them achieve financial stability. However, they are more or less efficient or feasible. In terms of market efficiency, the multi-polar scenario is the best and the fragmentation scenario is the worst, since gains of integration depend on the size of the new capital market. Regarding sovereignty of regulation, fragmentation is the best scenario and the multi-polar scenario is the worst, because it necessitates coordination at the global level which implies moving further away from respective national preferences. However, the more realistic option seems to be the regionalisation scenario: this level of coordination seems much more realistic than the global one; the market should be of sufficient size to enjoy substantial benefits of integration. Nevertheless, the “European government” might gradually increase the degree of financial integration outside Europe in line with the degree of cooperation with the rest of the world. Originality/value – Foresight studies on financial markets and regulation are quite rare. This may be explained by the difficulty to forecast what will be their evolution in the coming decades, not least because finance is fundamentally unstable. This paper provides a framework to consider what could be the best strategy of regulators in such an unstable environment.

U. S. Investment Banks in the Context of the Post-Crisis International Banking Regulation Reform

2020 ◽  
Vol 2020 (1) ◽  
pp. 21-40
Author(s):  
Eduard Dzhagityan ◽  
Anastasiya Podrugina ◽  
Sofya Streltsova
Keyword(s):  
Financial Stability ◽  
Banking Regulation ◽  
Capital Requirements ◽  
Capital Adequacy ◽  
Investment Banks ◽  
Basel Iii ◽  
International Banking ◽  
Minimum Capital ◽  
Negative Effect

The article looks into the reasons underlying the outspread of the full-scale mechanism of banking regulation over U. S. investment banks. We analyze the effect of the Basel III standards on stress-resilience of investment banks and examine the role of U. S. investment banks in ensuring financial stability. Based on regression analysis we found that minimum capital adequacy standards of Basel III do not have negative effect on ROE of the U. S. investment banks that are G-SIB category-designate; however, additional capital requirements (Higher Loss Absorbency (HLA) surcharge) that depend on G-SIB’s systemic significance according to their bucket as per Financial Stability Board classification do have significant and negative effect on ROE in the post crisis period. Besides, leverage requirements that also depend on G-SIB’s systemic significance have a statistically significant effect on ROE.

Part V The International Dimension, 13 Hong Kong’s Future as a Leading International Financial Centre

2016 ◽  
Author(s):  
Arner Douglas W ◽  
Hsu Berry FC ◽  
Goo Say H ◽  
Johnstone Syren ◽  
Lejot Paul ◽  
...  
Keyword(s):  
Economic Development ◽  
Hong Kong ◽  
Financial Markets ◽  
Financial Market ◽  
Financial Stability ◽  
International Dimension ◽  
Financial Centre ◽  
Regulatory Systems ◽  
The Future

This chapter summarizes the main arguments and discussions of the book and presents an overview of major concerns for the future of Hong Kong’s financial markets. In addition to describing financial market law and practice in Hong Kong, this book has sought to point out related major issues, whether legal, economic, or cultural. Each chapter has concluded with an evaluation of Hong Kong’s financial markets, identifying weaknesses and where reform is most needed. This final chapter takes the analysis further, presenting an overview of major concerns for the future of Hong Kong’s financial markets and their legal and regulatory systems. These arise in two main respects: first, risks to be addressed out of concern for financial stability and the continued economic development of Hong Kong; and second, opportunities to enhance Hong Kong’s competitiveness as a financial centre, especially in the context of prospects for China and East Asia.

scholarly journals Atif Mian and Amir Sufi. House of Debt: How They (and You) Caused the Great Recession, and How We Can Prevent It from Happening Again. University of Chicago Press. USA. 2014. 192 pages.

2013 ◽  
Vol 52 (3) ◽  
pp. 247-260
Author(s):  
Asad Zaman Kemal
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Great Depression ◽  
Global Financial Crisis ◽  
Aggregate Demand ◽  
Jel Classification ◽  
Recent Book ◽  
The Great Recession ◽  
The Great Depression ◽  
University Of Chicago Press

This is a review and a summary of some of the key arguments presented by Mian and Sufi in their recent book “House of Debt.” It highlights the contribution of Mian and Sufi by showing how they have solved the mystery of why there was a huge drop in aggregate demand during the Great Depression of 1929 and also following the recent Global Financial Crisis of 2007-08. The article shows how major economists like Keynes, Friedman, Lucas and others tried and failed to provide an adequate explanation of this mystery. The key to the mystery is the huge amount of levered debt present during both of these economic crises. The solution suggested by Mian and Sufi is to replace interest based debt by equity based contracts in financial markets. This solution resonates strongly with Islamic teachings on finance. These links are also highlighted in this article. JEL classification: B22, E12, E32 Keywords: Great Depression, Global Financial Crisis, Debt-Deflation, Levered Debt

scholarly journals Съвременни аспекти на регулирането на финансовите пазари (Contemporary Aspects of Financial Markets Regulation)

2020 ◽  
pp. 14-28
Keyword(s):  
Financial Markets ◽  
Main Part ◽  
Banking Sector ◽  
Financial Derivatives ◽  
The Third ◽  
Banking Regulations ◽  
Scientific Project ◽  
Alternative Finance ◽  
Global Financial System ◽  
Financial Markets Regulation

Contemporary Aspects of Financial Markets Regulation The article reflects the work and results under a university scientific project (UNWE, 2017- 2019) bearing the same title. The choice of the specific aspects to be explored is based on the market developments post-2008, when the world was already affected by the Global financial and economic crisis. The banking sector regulation is a subject of the first main part, as the banks were in the epicenter of the financial collapse in 2008 and afterwards, when many weaknesses and gaps in banking regulations became evident. The second main part of the article is about the financial derivatives market – those financial instruments were defined as drivers of the globalization of the crisis. The developments on the financial derivatives market, including its regulation, have a great impact on the global financial system and most notably on its stability. The third main part of the article treats the problems of alternative finance, as a forceful process of circumventing traditional banking is taking place. This is a new field, based on financial innovation, and its regulation is a contemporary matter. The fourth part is about the regulatory reforms of the Bulgarian financial market, given in perspective for a EU member state and respectively the effects for the national economy.

scholarly journals The Fund's Response to the 2007-08 Financial Crisis - Stocktaking and Collaboration with the Financial Stability Forum

Policy Papers ◽  
2008 ◽  
Vol 2008 (56) ◽  
Author(s):  
Keyword(s):  
Financial Crisis ◽  
Financial Stability ◽  
Initial Assessment ◽  
Executive Directors ◽  
Policy Responses ◽  
Policy Frameworks ◽  
World Economic ◽  
Global Financial System ◽  
Economic Outlook

The present financial crisis is testing the resilience of the global financial system as well as the robustness of national and multilateral policy frameworks. As requested by Executive Directors, this paper reviews recent progress in meeting these challenges, focusing on the role of the Fund and its collaboration with the Financial Stability Forum (FSF). In concert with other international bodies, the Fund has sought to promote appropriate policy responses to the financial turmoil, including through its report on The Recent Financial Turmoil—Initial Assessment, Policy Lessons, and Implications for Fund Surveillance, in the Global Financial Stability Report (GFSR) and the World Economic Outlook (WEO), as well as in recent Article IV consultations and Financial Sector Assessment Programs (FSAPs). The Fund has also responded to the International Monetary and Financial Committee’s (IMFC) call for closer collaboration with other international fora, including by supporting the implementation of policy lessons from the crisis, such as the 67 FSF recommendations issued in April 2008.

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