Viral Acharya, Thomas Cooley, Matthew Richardson , Ingo Walter, 12 July 2011

22 July marks the first anniversary of the signing of the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act, the most comprehensive US regulatory effort for financial markets since the 1930s. This column introduces an eBook analysing where the regulatory process stands after one year and where it is headed.

Viral Acharya, Thomas Cooley, Matthew Richardson , Ingo Walter, 12 July 2011

22 July marks the first anniversary of Dodd-Frank, the most comprehensive US regulatory effort for financial markets since the 1930s. In June, The Pew Charitable Trusts and NYU's Stern School collected an array of prominent experts to provide an interim report of the bill's effectiveness. Vox's latest ebook presents their conclusions.

Harry Huizinga, Wolf Wagner, Johannes Voget, 11 July 2011

What new policies should be included in financial and regulatory reforms? This column argues that banks are under-taxed along many dimensions and analyses a proposed broad tax on financial-sector income.

Franklin Allen, Thorsten Beck, Elena Carletti, Philip Lane, Dirk Schoenmaker, Wolf Wagner, 20 June 2011

The global crisis has provided compelling evidence of the need to understand the role of banks in international finance. This column introduces a new CEPR report analysing key aspects of cross-border banking taking a European focus. The report argues that policy reforms in micro- and macro-prudential regulation and macroeconomic policies are urgently needed for Europe to improve its efficiency and reduce its risk.

Jon Danielsson, Robert Macrae, 17 June 2011

Financial risk models have been widely criticised for both theoretical and practical failures, especially during the recent financial crisis. In the second of two columns, the authors outline why the shortcomings of risk models matter before making suggestions for how the financial industry and supervisors should use models in practice.

Jon Danielsson, Robert Macrae, 16 June 2011

Risk models are at the heart of the financial sector’s self-monitoring as well as supervision by regulators. This column, the first of two, addresses the question of how risk models are misused in practice by practitioners and supervisors alike. This misuse causes risk management to fail when it is most needed.

Avinash Persaud, 04 June 2011

Competition in the banking sector is seen by many as a way to reduce the chances of instability and a repeat crisis. This column highlights one area – the market for securities exchange, clearing, and settlement – where such competition is at risk of being undermined.

Andrew Rose, Tomasz Wieladek, 29 May 2011

During the global crisis governments made substantial interventions in financial markets, particularly in the banking sector. This column argues that one unintended consequence of bank nationalisations has been to reduce cross-border lending. After nationalisation, foreign banks reduced British lending as a share of total lending by about 11 percentage points and increased interest rates to UK residents by 70 basis points. This suggests foreign nationalised banks have engaged in financial protectionism.

Ugo Albertazzi, Leonardo Gambacorta, Carmelo Salleo, 25 May 2011

Before the global crisis, securitisation was hailed as a major breakthrough for the safe functioning of financial markets. Now it is suffering from seriously bad public relations. This column presents evidence from 50 Italian banks between 1995 and 2006 and argues that securitisation, by itself, does not deserve such a nasty reputation.

Nicolas Véron, 23 May 2011

The quip that “cross-border banks are international in life, but national in death” resonates loudly amongst the empty shells of international banks that have since been bailed out by their home countries. This column argues that such tensions will intensify in the coming years.

Charles Goodhart, Avinash Persaud, 13 May 2011

The UK’s Independent Commission on Banking was set up last year to consider reforms to promote financial stability and competition. This column reacts to the commission’s interim report released on 11 May 2011. It argues that the commissioners have a lot to ponder before the final report is due in September – they have not gone far enough.

Paolo Angelini, Stefano Neri, Fabio Panetta, 23 May 2011

The global financial crisis has prompted an intense debate on the role of macroprudential policies in limiting the accumulation of risks and imbalances. Major economies have recently established new institutions, or strengthened existing ones, with a mandate to pursue financial stability. This column examines the effectiveness and consequences of macroprudential policies with a focus on their interaction with monetary policy.

Raihan Zamil, 07 May 2011

How much capital should banks hold to cover their risk? This column argues that the preoccupation with capital rules misses a more fundamental concern. No amount of feasible regulatory capital can be an appropriate substitute for robust asset selection and valuation standards of banks.

David Miles, 27 April 2011

The global crisis has called into question how banks are run and how they should be regulated. Highly leveraged banks went under, threatening to drag down the entire financial system with them. Here, David Miles of the Bank of England’s Monetary Policy Committee, shares his personal views on the optimal leverage for banks. He concludes that it is much lower than is currently the norm.

Nicolas Véron, 26 April 2011

On 11 April, the Independent Commission on Banking in the UK, chaired by Oxford economist John Vickers, published its much-awaited interim report on reform options for British banking. This column argues that despite its critics, the policy proposals are a significant milestone not only for the UK, but for European and global banking reform.

Diane Coyle, 22 April 2011

Diane Coyle talks to Viv Davies about her new book 'The Economics of Enough: How to Run the Economy as if the Future Matters'. The book addresses the need to create a sustainable economy - how to consider tomorrow's needs as well as today's. It covers a broad range of issues, from the banking crisis to climate change, and sets out some of the initial, practical steps that will be needed to build a future economy that is based on a true sense of value. The interview was recorded in London in April 2011. [Also read the transcript.]

Morris Goldstein, Nicolas Véron, 14 April 2011

Are banks too big to fail? This column suggests now is the time for Europeans to ask this question. It argues that given the potential risks to systemic stability, there is a case for policy action even in the absence of analytical certainty.

Venkatachalam Shunmugam, 09 April 2011

Derivatives markets are a controversial member of the financial-sector family. This column looks at derivatives markets across the world and notes the wide discrepancy in regulatory frameworks. It argues that this calls for the “synergistic coordination” of regulators – first at the national level and then at the global level – to ensure these markets operate efficiently and without imposing excessive risk on the wider economy.

Jean-Louis Arcand, Enrico Berkes, Ugo Panizza, 07 April 2011

Over the last three decades the US financial sector has grown six times faster than nominal GDP. This column argues that there comes a point when the financial sector has a negative effect on growth – that is, when credit to the private sector exceeds 110% of GDP. It shows that, of the advanced countries currently suffering in the fallout of the global crisis were all above this threshold.

Hans Gersbach, 02 April 2011

When banks failed, the government paid up. But the bankers responsible kept their bonuses from the years of excess. This column argues for “crisis contracts”. Such contracts require that, in the event of a crisis, bank managers forfeit a portion of their past earnings to rescue the banking system.

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