Jean Tirole
- Published in print:
- 2010
- Published Online:
- October 2017
- ISBN:
- 9780691145235
- eISBN:
- 9781400834648
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691145235.003.0002
- Subject:
- Business and Management, Finance, Accounting, and Banking
This chapter aims to contribute to the debate on financial system reform. The first part describes what is perceived to be a massive regulatory failure, a breakdown that goes all the way from ...
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This chapter aims to contribute to the debate on financial system reform. The first part describes what is perceived to be a massive regulatory failure, a breakdown that goes all the way from regulatory fundamentals to prudential implementation. The second part discusses some implications of recent events for financial sector regulation. It argues that to avoid a repetition of the financial crisis, we need both to change public policies that contributed to the crisis (particularly the mortgage crisis) and to institute financial reforms. Desirable reforms of public policy regarding real estate lending include promoting consumer protection and reducing subsidies. Financial regulation must also be international. The creation of supranational regulatory structures has become increasingly urgent in a world in which institutions and counterparties are truly international.Less
This chapter aims to contribute to the debate on financial system reform. The first part describes what is perceived to be a massive regulatory failure, a breakdown that goes all the way from regulatory fundamentals to prudential implementation. The second part discusses some implications of recent events for financial sector regulation. It argues that to avoid a repetition of the financial crisis, we need both to change public policies that contributed to the crisis (particularly the mortgage crisis) and to institute financial reforms. Desirable reforms of public policy regarding real estate lending include promoting consumer protection and reducing subsidies. Financial regulation must also be international. The creation of supranational regulatory structures has become increasingly urgent in a world in which institutions and counterparties are truly international.
E. Philip Davis
- Published in print:
- 1995
- Published Online:
- November 2003
- ISBN:
- 9780198233312
- eISBN:
- 9780191596124
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198233310.003.0011
- Subject:
- Economics and Finance, Financial Economics
This chapter provides a selective summary of recent work in a number of areas relating to debt, fragility, and instability. First, four issues relating to bank debt are probed, namely real estate ...
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This chapter provides a selective summary of recent work in a number of areas relating to debt, fragility, and instability. First, four issues relating to bank debt are probed, namely real estate lending, pricing of risk, the putative decline of the banking sector, and the ’credit channel’ of monetary transmission. Following this, issues in securities markets relating to risk in derivatives, market liquidity risk, and the relation of institutional investors to financial instability are outlined. In a final section, the linking issue of risk in payments and settlements systems is considered. In each case, the aim is to provide the reader with a basic discussion of the relevant issues and with references for further reading on the topic concerned.Less
This chapter provides a selective summary of recent work in a number of areas relating to debt, fragility, and instability. First, four issues relating to bank debt are probed, namely real estate lending, pricing of risk, the putative decline of the banking sector, and the ’credit channel’ of monetary transmission. Following this, issues in securities markets relating to risk in derivatives, market liquidity risk, and the relation of institutional investors to financial instability are outlined. In a final section, the linking issue of risk in payments and settlements systems is considered. In each case, the aim is to provide the reader with a basic discussion of the relevant issues and with references for further reading on the topic concerned.
