Fifty Years of Financial Regulation in Germany

This chapter gives an overview on how financial market regulation evolved in Germany since the 1970s. The picture presented is somehow contradicting, as it seems that banking regulation and capital market regulation evolved in a quite different way. As far as banking regulation is concerned, it will be shown that starting with the Herstatt crisis in 1974 there was a clear trend towards tightening and increasing the regulatory perimeter. By analysing how the budget of the German banking supervision authority evolved since 1988, this claim will also be corroborated empirically. The picture with respect to capital market regulation is quite different, however. Here, the regulatory process started back in the year 1990 and, at least for the first decade, it was focused towards liberalizing and modernizing the German capital market. It will be argued that there is an underlying public choice mechanism able to explain this different development in two adjacent areas of financial market regulation.

Part I International Capital Markets in Context, 1 Introduction

This introductory chapter provides an overview of international capital markets. International capital markets are not a new phenomenon; in various forms, they have been around for centuries. The global financial crisis, however, shone a strong light on the workings of international capital markets. They had, unmistakably, been purveyors of systemic risk and seemingly attracted little by way of oversight or regulation. The chapter then assesses how international capital markets have been regulated and what lies on the regulatory horizon. It addresses securities regulation; capital market regulation; information disclosure; and self-regulation. There is no doubt that in a dozen years from now, the regulatory and institutional landscape of international capital markets will have been transformed. Adjustments to the shock of financial crisis have been working their way through systems around the world. Demographics and geopolitical forces are shifting, changing with them investment patterns, institutional models, and long-held assumptions about market behaviour. Information technology has also profoundly impacted information-based regulatory systems, outpacing regulatory responses.

The Institutional and Legal Framework Of Emerging Capital Markets: The Experience Of Cis Countries

The present study focuses on the development of one of the key institutions of the market economy – namely, the securities market in terms of its role in promoting competitive conditions in the financial services sector. Due to a variety of objective and subjective factors, banks have become the most dominant institutions in all CIS countries in terms of, both, accumulating and redistributing financial resources. Particularly, the research outlines the background to capital market formation and development in CIS countries through a brief history of the CIS; considers the necessity of capital market and its regulation in CIS countries; reviews the institutional and legal framework of capital market regulation, and analyzes certain problems of capital market development.

Genesis And Development Of Capital Market In Cis Countries: Cases From Russia, Kazakhstan, And Uzbekistan

This paper provides the necessary information and analysis for understanding and considering the main research questions and discussions of the research. Notably, this section outlines the background to capital market formation and development in CIS countries through a brief history of the CIS; considers the necessity of capital market and its regulation in CIS countries; reviews the institutional and legal framework of capital market regulation, and analyzes certain problems of capital market development.

Legal and institutional frameworks for capital market regulation in Nigeria: recasting the agendas beyond compliance-based regulation

Purpose The purpose of the paper is to explore the legal and institutional frameworks for optimal regulation of capital market beyond compliance-based regulation, to enable the market to deliver on its strategic role as the enabler of efficient allocation of resources and economic growth. Design/methodology/approach The paper relies on doctrinal approach to assess the existing regulatory approaches and prospects for the future. Findings The paper found that the regulatory authorities unduly concentrate on compliance-based and sanction-based regimes without sufficient emphasis on innovations and transformative solutions that foster diversification and efficiency in the market. The paper also found that the deployment of innovations and transformative solutions complemented with robust regulation is positively correlated with capital market growth. Originality/value The paper offers fresh insights on the optimal approaches to regulation of capital market that transcend compliance-based and sanction-based regimes to reliance on innovative tools that expand, diversify and effectuate the functionality and utility of capital market.

Genesis And Development Of Capital Market In CIS Countries: Cases From Russia, Kazakhstan, And Uzbekistan

This paper provides the necessary information and analysis for understanding and considering the main research questions and discussions of the research. Notably, this section outlines the background to capital market formation and development in CIS countries through a brief history of the CIS; considers the necessity of capital market and its regulation in CIS countries; reviews the institutional and legal framework of capital market regulation, and analyzes certain problems of capital market development.

The Institutional and Legal Framework of Emerging Capital Markets: The Experience of CIS Countries

The present study focuses on the development of one of the key institutions of the market economy – namely, the securities market in terms of its role in promoting competitive conditions in the financial services sector. Due to a variety of objective and subjective factors, banks have become the most dominant institutions in all CIS countries in terms of, both, accumulating and redistributing financial resources. Particularly, the research outlines the background to capital market formation and development in CIS countries through a brief history of the CIS; considers the necessity of capital market and its regulation in CIS countries; reviews the institutional and legal framework of capital market regulation, and analyzes certain problems of capital market development.

PENERBITAN SAHAM BANK BUMD TERBUKA TANPA HAK MEMESAN EFEK TERLEBIH DAHULU DIHUBUNGKAN DENGAN FUNGSI PASAR MODAL SEBAGAI ALTERNATIF PEMBIAYAAN PERUSAHAAN DAN INVESTASI

ABSTRAK Salah satu fungsi utama pasar modal adalah sebagai salah satu alternatif pembiayaan bagi perseroan atau investasi, Perseroan terbuka dapat melaksanakan penambahan modal dengan menerbitkan lembar saham baru di pasar modal melalui mekanisme Hak Memesan Efek Terlebih Dahulu atau melalui mekanisme Penambahan Modal Tanpa Hak Memesan Efek Terlebih Dahulu (selanjutnya disebut PMTHMETD). Namun demikian karena mayoritas pemegang saham BUMD adalah Pemerintah Daerah, terdapat ketidakharmonisan antara regulasi yang berlaku di pasar modal untuk aksi korporasi penambahan modal perusahaan dengan regulasi yang berlaku untuk pelaksanaan investasi Pemerintah Daerah sehingga menjadi kendala dalam pelaksanaannya. Penelitian ini bersifat deskriptif analitis dengan menggunakan pendekatan yuridis normatif. Hasil penelitian menunjukkan urgensi pemerintah untuk menyelaraskan regulasi yang berlaku dalam investasi pemerintah daerah dengan aturan yang berlaku di pasar modal mengingat terdapatnya BUMD berstatus perusahaan terbuka, selain itu BUMD berstatus terbuka dalam melakukan aksi korporasi penambahan modal selain PMT HMETD dapat melalui mekanisme HMETD untuk meminimalisir adanya risiko harga eksekusi yang lebih tinggi dari harga pasar. Belum adanya payung hukum yang tegas dalam regulasi investasi pemerintah daerah pada BUMD berstatus perusahaan terbuka tidak mencerminkan asas kepastian hukum, yaitu bagi pemerintah daerah selaku investor dan BUMD itu sendiri sebagai perusahaan terbuka. Kata kunci: BUMD terbuka; kepastian hukum; pasar modal; PMT HMETD. ABSTRACT One of the main functions of capital market is as an alternative financing for a company or investment, a public company can carry out additional capital by issuing new shares through rights issue or through the mechanism of “Without Pre-emptive Rights” (PMTHMETD). However, because the majority of shareholders are Regional Governments, there is a gap between capital market regulation with Local Government investment regulation, so it becomes an obstacle in its implementation. This research is a descriptive analytical study using a normative juridical approach. The results show the urgency of the government to harmonize applicable regulations in the implementation of local government investment with capital market regulation considering there are Public Listed Regional Owned Company, however Public Listed Regional Owned Company in carrying out corporate actions can increase capital through the “with pre-emptive rights” or HMETD mechanism to minimize the risk of execution price which is higher than the market price. The absence of a firm legal protection in the regulation of local government investment in Public listed Regional Owned Company does not reflect the principle of legal certainty, namely for the local government as an investor and the Regional Owned Company itself as a public listed company.Keywords: capital market; legal certainty; Non Pre-emptive Rights; public listed regional owned company

A Tale of Two Crises: The 2008 Mortgage Meltdown and the 2020 COVID-19 Crisis

The causes and consequences of the 2008 mortgage meltdown and 2020 COVID-19 crisis are quite different: the 2008 mortgage meltdown reflected infection of the financial system due to excess leverage and poor-quality mortgage loans, and the recent crisis reflects a substantial global economic shock to contain the viral outbreak of the coronavirus. Yet the financial and medical systems share many elements, such as opacity and interconnectedness as well as adequate buffers and reserves. We examine these themes as well as asset pricing, moral hazard (though it was at the root of the crisis only in the Great Recession), the consequences for government as a systemic actor, economic concentration, and capital market regulation in the two crises. In both crises, interventions in financial markets and disruptions in the housing market played important, but differing, roles. The recent crisis elucidates open questions about the foundation of financial economics and risk sharing.