Goodhart, Charles (2010) How should we regulate bank capital and financial products? What role for "living wills"? (Cómo Deberíamos Regular el Capital Bancario y los Productos Financieros? Cuál es el Papel de los 'Testamentos en Vida?'). Revista de Economia Institucional, 12 (23). pp. 85-109. ISSN 0124-5996
Full text not available from this repository.Abstract
Financial regulation is normally imposed in reaction to some prior crisis, rather than founded on theoretical principle. In the past, regulation has been deployed to improve risk management practices in individual banks. This was misguided. Instead, regulation should focus first on systemic externalities (contagion) and second on consumer protection (asymmetric information). The quantification of systemic externalities is difficult. Since the costs of financial breakdown is high, a natural response is to pile extra regulation onto a set of regulated intermediaries, but this can impair their capacity to intermediate and leads onto border problems, between regulated and unregulated and between different national regulatory systems.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.economiainstitucional.com/eng/index.htm |
| Additional Information: | © 2010 Universidad Externado de Colombia Facultad de Economía |
| Divisions: | Financial Markets Group |
| Subjects: | H Social Sciences > HB Economic Theory |
| Date Deposited: | 21 Apr 2011 09:24 |
| Last Modified: | 13 Sep 2024 22:55 |
| URI: | http://eprints.lse.ac.uk/id/eprint/35583 |
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