Bank capital has emerged as a key element in the post-crisis financial regulatory reforms. Basel III is now likely to include a 7% equity-to-risk-weighted-assets capital requirement.
Capital, politics and bank weaknesses
Jon Danielsson, 27 June 2011
Do banks learn from crises?
Ruediger Fahlenbrach, Robert Prilmeier, René M Stulz, 27 May 2011
On 17 August 1998, Russia defaulted on its debt. This event started a dramatic chain reaction. As one observer put it, “the entire global economic system as we know it almost went into meltdown, beginning with Russia's default” (Friedman 1999). As Russia defaulted, a number of investors, including banks, made large losses.
From financial crisis to Great Recession: Evidence on the transmission role of banks
Shekhar Aiyar, 12 May 2011
How did problems originating in one asset class in one country propagate internationally, sparking the Great Recession? A standard stylised explanation relies on the globalisation of the banking system, and has two parts.
Optimal Bank Capital
David Miles, Gilberto Marcheggiano, Jing Yang, 11 April 2011
Do we need big banks?
Harry Huizinga, Asli Demirgüç-Kunt, 18 March 2011
In recent years, many banks have reached enormous size both in absolute terms and relative to their national economies. By 2008:
Banks and capital markets: A two-way nexus
Biagio Bossone, 18 December 2010
Financial regulation is being rethought. One area where the conventional wisdom is being redrawn is the interaction of banks and capital markets. For years, banks and capital markets have been viewed as competing sources of financing (e.g. Jacklin 1987, Jacklin and Bhattacharya 1988, Diamond 1997, and Allen and Gale 1999 and 2002).
Banks and capital markets as a coevolving financial system
Fenghua Song, Anjan Thakor, 1 December 2010
At a time when financial regulation is being fundamentally rethought, the optimal configuration of banks and capital markets within a financial system and how each should be regulated have become centre-stage issue. Banks and capital markets are often viewed as competing sources of financing (e.g. Allen and Gale 1997, Boot and Thakor 1997, and Dewatripont and Maskin 1995).
Iceland’s special investigation: The plot thickens
Thorvaldur Gylfason, 30 April 2010
The recently published nine-volume, 2,400-page report from the Icelandic Parliament‘s Special Investigation Commission (SIC, appropriately pronounced sick) is not an attempt at whitewash as many had feared.
Who should decide on emergency liquidity assistance?
Jorge Ponce, 16 January 2010
Many countries are revising their institutions to deal with troubled banks. In the UK, the Labour Party believes that the current arrangement – the Tripartite Standing Committee constituted by the HM Treasury, the Bank of England, and the Financial Services Authority – is the best framework for regulating and supervising financial institutions and wants to strengthen it.
Oil Prices and bank profitability: Evidence from major oil-exporting countries in the Middle East and North Africa
Heiko Hesse, Tigran Poghosyan, 27 October 2009
The recent economic and financial crisis and the sharp fall in oil prices have hit hard many of the oil-exporting countries in the Middle East and North Africa (MENA).
- The case for 4% inflationBall
- Helicopter money as a policy optionReichlin, Turner, Woodford
- The banking crisis as a giant carry trade gone wrongAcharya, Steffen
- Everything the IMF wanted to know about financial regulation and wasn’t afraid to askBair
- Rethinking macroeconomic policy: Getting granularBlanchard, Dell'Ariccia, Mauro
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
Baldwin, Kawai, Wignaraja, 11 June 2013