The Global Crisis revealed serious deficiencies in the supervision of financial institutions. In particular, regulators neglected organisational culture at the institutional level. This column reviews efforts since 2011 by De Nederlandsche Bank to oversee executive behaviour and cultures at financial institutions. These measures aimed at identifying risky behaviour and decision-making processes at a sufficiently early stage for appropriate countermeasures to be implemented. The findings show that regulators can play a larger part in securing the stability of the financial system by taking an active role in shaping institutional cultural processes.
Jakob de Haan, Wijnand Nuijts, Mirea Raaijmakers, Friday, November 6, 2015 - 00:00
Jon Danielsson, Morgane Fouché, Robert Macrae, Tuesday, October 20, 2015 - 00:00
There has always been conflict between macro- and microeconomic regulation. Microeconomic policy reigns supreme during good times, and macro during bad. This column explains that while the macro and micro objectives have always been present in regulatory design, their relative importance has varied according to the changing requirements of economic, financial and political cycles. The conflict between the two seems set to deepen and so, regardless of which ‘wins’, policymakers must not undermine the central bank's execution of monetary policy.
Jon Danielsson, Jean-Pierre Zigrand, Friday, August 7, 2015 - 00:00
The long-running Greek crisis and China’s recent stock market crash are the latest threats to the stability of the global financial system. But as this column explains, systemic risk is an inevitable part of any market-based economy. While we won’t eliminate systemic risk entirely, the agenda for researchers and policymakers should be to create a more resilient financial system that is less prone to disastrous crises and that still delivers benefits for the economy and for society.
Liangliang Jiang, Ross Levine, Chen Lin, Saturday, July 25, 2015 - 00:00
The Global Crisis has brought the ins and outs of bank stability to the attention of increasing numbers of academics and policymakers. But what is the impact of bank regulation and competition on bank opacity? This column presents one of the first evaluations of the impact of bank regulatory reforms on the quality of information disclosed by banks, which in turn helps us assess bank stability.
Dirk Schoenmaker, Sunday, May 31, 2015 - 00:00
Debt financing amplifies the effects of asset prices fluctuations across the financial system and this can produce bubbles. Regulation therefore increasingly focusses on restricting debt financing. Although there is no silver bullet for making the financial system failure-proof, this column argues that policymakers should adopt an integrated and consistent macroprudential approach across the financial system in order to help prevent businesses moving to less-regulated pastures.
Xavier Vives, Tuesday, March 17, 2015 - 00:00
Jon Danielsson, Eva Micheler, Katja Neugebauer, Andreas Uthemann, Jean-Pierre Zigrand, Monday, February 23, 2015 - 00:00
Darrell Duffie , Piotr Dworczak, Haoxiang Zhu, Monday, February 16, 2015 - 00:00
Jean-Marie Grether, Nicole A. Mathys, Caspar Sauter, Saturday, January 31, 2015 - 00:00
Xavier Vives, Monday, December 22, 2014 - 00:00
Iain M. Cockburn, Jean O. Lanjouw, Mark Schankerman, Saturday, November 22, 2014 - 00:00
Jean Pisani-Ferry, Friday, November 7, 2014 - 00:00
Christian Thimann, Friday, October 17, 2014 - 00:00
Christian Thimann, Friday, October 10, 2014 - 00:00
Amir Attaran, Roger Bate, Ginger Zhe Jin, Aparna Mathur, Thursday, October 9, 2014 - 00:00
Joanne Lindley, Steven McIntosh, Sunday, September 21, 2014 - 00:00
Jussi Keppo, Josef Korte, Sunday, September 7, 2014 - 00:00
Jonathan Bridges, David Gregory, Mette Nielsen, Silvia Pezzini, Amar Radia, Marco Spaltro, Tuesday, September 2, 2014 - 00:00
Rafael Doménech, Mónica Correa-López, Sunday, August 10, 2014 - 00:00
Exporting goods requires services. This column discusses new evidence showing that the improvement in services regulations that took place over the 1990s and 2000s in Spain substantially increased the volume of exports of manufacturing firms, especially of large corporations.
Harold Cole, Thomas F Cooley, Sunday, June 22, 2014 - 00:00
In the aftermath of the sub-prime crisis, the major credit rating agencies have been criticised for giving overly generous ratings to mortgage-backed securities. Whereas many commentators have blamed the ‘issuer pays’ market structure for distorting incentives, this column argues that the key distortion came from regulators’ use of private ratings to assign risk weights. This induced investors to focus on the risk weights attached to ratings rather than their information content, thus undermining the reputation mechanism that had previously kept ratings honest.