Xavier Freixas, 01 September 2012

Before 2007, the widely accepted view was that systemic banks had to be bailed out no matter what. This column argues that views are changing – and for the better.

Giancarlo Spagnolo, 13 August 2012

How to save the banks but not the bankers? This column argues that fines for criminal behaviour in banks are not enough – it may be time to start locking people up.

Stefan W Schmitz, 28 July 2012

Those responsible for supervising the global financial system generally agree that international liquidity regulation must not only be harmonised, but also improved substantially. This column argues that any move towards dissolving this international consensus endangers financial stability in the EU.

Jihad Dagher, Ning Fu, 26 June 2012

Ever since the recent mortgage crisis, calls for tighter regulation on lenders have been widespread. But would stricter supervision and regulation of lenders have been any use during the frenzied optimism of a boom? This column argues that it might. It shows that lending by the loosely regulated non-bank companies was associated with higher foreclosure during the housing downturn when compared with lending by the more tightly regulated banks.

Jon Danielsson, Roger Laeven, Enrico Perotti, Mario Wüthrich, Rym Ayadi, Antoon Pelsser, 23 June 2012

October 2011 saw the latest draft of Solvency II, the European Union’s code for regulation of the insurance industry. This column argues that the latest proposals need to be drafted again, urgently.

Enrico Perotti, 16 January 2014

The ‘shadow banking’ sector is a loose title given to the financial sector that exists outside the regulatory perimeter but mimics some structures and functions of banks. This column introduces a new CEPR Policy Insight that looks into what we have learned about shadow banking since the Global Crisis.

Nicolas Véron, 04 May 2012

Europe’s finance ministers are currently deciding on the legislation intended to implement the Basel III international agreement on bank capital, leverage, liquidity, and risk management. This column argues that many officials, within Europe and beyond, severely underestimate the importance of this debate for reaching a global standard for financial regulation.

Charles Calomiris, Shekhar Aiyar, Tomasz Wieladek, 03 May 2012

How can governments limit excessive and unstable credit growth? Should they raise capital requirements for banks? This column looks at evidence from a policy experiment in the UK. It finds that UK-regulated banks did cut back on credit supply but that there was still ‘leakage’ from foreign banks.

Richard Portes, 30 April 2012

Once upon a time, credit default swaps were a form of insurance held by investors who also owned the underlying asset. But this column argues that the market has now become overwhelmed by ‘naked CDSs’ that allow speculators to make bets on the future of corporates and sovereigns – bets that can be wildly destabilising. This column calls for a ban on naked CDSs.

Ossi Leppänen, 18 April 2012

Since the start of the crisis the Eurosystem balance sheet has grown from €1200 billion in June 2007 to around €2900 billion in March 2012. But this is spread unevenly among different central banks within the Eurozone, raising the thorny issue of intra-area (TARGET) balances. This column argues that these balances signal a need for change and restructuring in the Eurozone banking sector.

Xavier Freixas, Christian Laux, 17 April 2012

Faith in market discipline has been shattered by the financial crisis. This column argues that the failure of market discipline has different roots. It points to a lack of transparency and efficiency, particularly when it is needed most. In order to rectify this, however, it is not enough to merely increase the provision and disclosure of information. Instead, transparency depends on how that information is interpreted and used.

Charles Goodhart, Wolf Wagner, 12 April 2012

"Don't put all your eggs in one basket" is standard financial advice. This column says that financial regulators are violating that principle. It argues that financial institutions have become too similar to each other, making financial crises more likely. It proposes a regulatory approach based on relative stock market correlations that would encourage greater diversity in the financial system.

Thorvaldur Gylfason, 11 April 2012

Most economists would agree that the global financial and economic crisis was at least partly caused by a failure in the regulation of the financial sector. While regulatory reform is now being debated throughout the world, critics argue that it is only a matter of time before any new regulations are removed by powerful interest groups. This column asks whether prompt corrective action belongs in constitutions.

Andrew Patton, Tarun Ramadorai, Michael Streatfield, 09 April 2012

In the wake of the financial crisis, the Securities and Exchange Commission proposed a rule requiring US-based hedge funds to provide regular reports on their performance, trading positions, and counterparties. Before the policy is phased in later this year, this column argues that such a move will benefit not only regulators but investors as well.

Ralph De Haas, Yevgeniya Korniyenko, Elena Loukoianova, Alexander Pivovarsky, 04 April 2012

Depending on which way you look at it, international banking either provided stability in countries where domestic banks failed or provided instability in otherwise well-run financial sectors. This column looks at the experience of Europe’s emerging economies. It argues that the latest Vienna Initiative aimed at improved coordination and information-exchange between banks is essential for financial stability in the region.

The Editors, 30 March 2012

This new CEPR eReport is devoted to exploring the general issue of the origins of excessive risk-taking in the banking industry. In doing so, it provides the analytical ammunition required to rigorously examine regulatory policy at a time when it is undergoing a complete metamorphosis.

Nicolas Véron, 17 March 2012

Are the regulators finally fighting back? This column argues that behind the headlines, those responsible for setting global financial standards are growing steadily more confident and assertive. Rather than simply set the standards, they are finally making sure they get enforced.

Xavier Vives, 13 March 2012

The global crisis has raised many questions. High on any list would be how regulators and supervisors missed the warning signs so spectacularly, particularly those responsible for overseeing the dangerously exposed financial system. This column, by one of CESifo’s European Economic Advisory Group, provides a diagnosis of the problem and outlines what can be done about it.

Adrian Blundell-Wignall, Paul E Atkinson, 29 February 2012

It wasn’t long ago that people were blaming banks, not governments – and the issue of the day was financial regulation, not fiscal compacts. This column, the second of two, focuses on the Basel framework for banking regulation that it argues has led to a ‘vast, poorly diversified, highly interconnected banking system’. In this section it outlines how to put this right.

Adrian Blundell-Wignall, Paul E Atkinson, 28 February 2012

Amid the chaos of the Eurozone crisis, the debate over how to fix the banking system has been pushed to one side. This column, the first of two, aims to bring banking regulation back to the centre of attention. It argues that the Basel III regulations currently being proposed are already desperately out of date.

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