Stephen Cecchetti, Kim Schoenholtz, 03 December 2017

The Global Crisis dramatically revealed the severity of ignorance about risk exposure in the global financial system. A major issue is the complexity of legal structures with webs of subsidiaries and a lack of consolidated information systems. This column describes efforts to address these failings through the launching of a global legal entity identifier. The initiative offers great promise for addressing the complex information problems. However, network externalities imply that its success will depend on participation and adoption incentives.

Stephen Cecchetti, Kim Schoenholtz, 15 August 2016

The UK’s Brexit referendum is providing us with the first significant test of the new regulatory system. This column asks whether banks have sufficient capital and liquidity to withstand the ‘shock’. Unless the global financial system as a whole is well capitalised, it remains only as strong as its weakest link.  And while the UK authorities have done a reasonable job of strengthening their banks and financial system, a number of large European banks are seriously undercapitalised.  

Neeltje van Horen, 25 October 2011

The global financial crisis has hurt banks in both advanced and emerging economies, but this column says the turmoil has favored the emerging-market entities in relative terms. It predicts a growing role for emerging-market banks in the global financial system, particularly in their own regions.

Viral Acharya, 04 March 2009

The de Larosiere report is an important contribution to the future global financial architecture, especially its proposals for reform of EU regulatory supervision and global coordination. There is a surprisingly broad consensus on what needs to be done to fix the global financial system emerging. One hopes that the G20 summit will be a platform to launch key international reforms.

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